Correlation Between Hyundai BNG and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Hyundai BNG and PLAYWITH 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 Hyundai BNG and PLAYWITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai BNG Steel and PLAYWITH, you can compare the effects of market volatilities on Hyundai BNG and PLAYWITH 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 Hyundai BNG with a short position of PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai BNG and PLAYWITH.
Diversification Opportunities for Hyundai BNG and PLAYWITH
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and PLAYWITH is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai BNG Steel and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH and Hyundai BNG 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 Hyundai BNG Steel are associated (or correlated) with PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Hyundai BNG i.e., Hyundai BNG and PLAYWITH go up and down completely randomly.
Pair Corralation between Hyundai BNG and PLAYWITH
Assuming the 90 days trading horizon Hyundai BNG Steel is expected to generate 1.01 times more return on investment than PLAYWITH. However, Hyundai BNG is 1.01 times more volatile than PLAYWITH. It trades about 0.3 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.05 per unit of risk. If you would invest 1,146,000 in Hyundai BNG Steel on November 3, 2024 and sell it today you would earn a total of 102,000 from holding Hyundai BNG Steel or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai BNG Steel vs. PLAYWITH
Performance |
| Timeline |
| Hyundai BNG Steel |
| PLAYWITH |
Hyundai BNG and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai BNG and PLAYWITH
The main advantage of trading using opposite Hyundai BNG and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai BNG position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Hyundai BNG vs. Cuckoo Electronics Co | Hyundai BNG vs. Samsung Electronics Co | Hyundai BNG vs. KyungIn Electronics Co | Hyundai BNG vs. Sungmoon Electronics Co |
| PLAYWITH vs. Hanwha Chemical Corp | PLAYWITH vs. Sung Bo Chemicals | PLAYWITH vs. Kisan Telecom Co | PLAYWITH vs. Kukdo Chemical Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |