Correlation Between Hyundai and SAMYOUNG M
Can any of the company-specific risk be diversified away by investing in both Hyundai and SAMYOUNG M 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 SAMYOUNG M 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 SAMYOUNG M Tek Co, you can compare the effects of market volatilities on Hyundai and SAMYOUNG M 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 SAMYOUNG M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and SAMYOUNG M.
Diversification Opportunities for Hyundai and SAMYOUNG M
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hyundai and SAMYOUNG is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and SAMYOUNG M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMYOUNG M Tek 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 SAMYOUNG M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMYOUNG M Tek has no effect on the direction of Hyundai i.e., Hyundai and SAMYOUNG M go up and down completely randomly.
Pair Corralation between Hyundai and SAMYOUNG M
Assuming the 90 days trading horizon Hyundai Motor Co is expected to under-perform the SAMYOUNG M. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Motor Co is 1.37 times less risky than SAMYOUNG M. The stock trades about -0.06 of its potential returns per unit of risk. The SAMYOUNG M Tek Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 413,500 in SAMYOUNG M Tek Co on September 3, 2024 and sell it today you would earn a total of 15,000 from holding SAMYOUNG M Tek Co or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. SAMYOUNG M Tek Co
Performance |
| Timeline |
| Hyundai Motor |
| SAMYOUNG M Tek |
Hyundai and SAMYOUNG M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and SAMYOUNG M
The main advantage of trading using opposite Hyundai and SAMYOUNG M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, SAMYOUNG M 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 SAMYOUNG M will offset losses from the drop in SAMYOUNG M's long position.| Hyundai vs. Kaonmedia Co | Hyundai vs. GS Retail Co | Hyundai vs. TK Chemical | Hyundai vs. Next Entertainment World |
| SAMYOUNG M vs. LG Display | SAMYOUNG M vs. Hyundai Motor | SAMYOUNG M vs. Hyundai Motor Co | SAMYOUNG M vs. Hyundai Motor 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.
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