Correlation Between Dongbang Transport and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Hyundai Green at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dongbang Transport and Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Hyundai Green Food, you can compare the effects of market volatilities on Dongbang Transport and Hyundai Green and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dongbang Transport with a short position of Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Hyundai Green.
Diversification Opportunities for Dongbang Transport and Hyundai Green
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongbang and Hyundai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Hyundai Green Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Green Food and Dongbang Transport is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dongbang Transport Logistics are associated (or correlated) with Hyundai Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Green Food has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Hyundai Green go up and down completely randomly.
Pair Corralation between Dongbang Transport and Hyundai Green
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Hyundai Green. In addition to that, Dongbang Transport is 1.32 times more volatile than Hyundai Green Food. It trades about -0.03 of its total potential returns per unit of risk. Hyundai Green Food is currently generating about 0.08 per unit of volatility. If you would invest 1,309,000 in Hyundai Green Food on November 8, 2024 and sell it today you would earn a total of 109,000 from holding Hyundai Green Food or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Hyundai Green Food
Performance |
| Timeline |
| Dongbang Transport |
| Hyundai Green Food |
Dongbang Transport and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Hyundai Green
The main advantage of trading using opposite Dongbang Transport and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Hyundai Green can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hyundai Green will offset losses from the drop in Hyundai Green's long position.| Dongbang Transport vs. DB Financial Investment | Dongbang Transport vs. Clean Science co | Dongbang Transport vs. Duksan Hi Metal | Dongbang Transport vs. Mgame Corp |
| Hyundai Green vs. SEOJEON ELECTRIC MACHINERY | Hyundai Green vs. Playgram Co | Hyundai Green vs. Iljin Display | Hyundai Green vs. Kyeryong Construction Industrial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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