Correlation Between Hyundai and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Hyundai and Sungchang Autotech 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 and Sungchang Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor Co and Sungchang Autotech Co, you can compare the effects of market volatilities on Hyundai and Sungchang Autotech 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 with a short position of Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Sungchang Autotech.
Diversification Opportunities for Hyundai and Sungchang Autotech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyundai and Sungchang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech and Hyundai 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 Motor Co are associated (or correlated) with Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Hyundai i.e., Hyundai and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Hyundai and Sungchang Autotech
Assuming the 90 days trading horizon Hyundai Motor Co is expected to under-perform the Sungchang Autotech. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Motor Co is 1.85 times less risky than Sungchang Autotech. The stock trades about -0.03 of its potential returns per unit of risk. The Sungchang Autotech Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 352,000 in Sungchang Autotech Co on November 29, 2024 and sell it today you would earn a total of 23,000 from holding Sungchang Autotech Co or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Sungchang Autotech Co
Performance |
| Timeline |
| Hyundai Motor |
| Sungchang Autotech |
Hyundai and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Sungchang Autotech
The main advantage of trading using opposite Hyundai and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Hyundai vs. Samsung Publishing Co | Hyundai vs. SK IE Technology | Hyundai vs. People Technology | Hyundai vs. Visang Education |
| Sungchang Autotech vs. Dongkuk Steel Mill | Sungchang Autotech vs. Daechang Steel Co | Sungchang Autotech vs. Korea Steel Co | Sungchang Autotech vs. Lotte Data Communication |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance |