Correlation Between Samyoung Electronics and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics 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 Samyoung Electronics and Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyoung Electronics Co and Hyundai Green Food, you can compare the effects of market volatilities on Samyoung Electronics 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 Samyoung Electronics with a short position of Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Hyundai Green.
Diversification Opportunities for Samyoung Electronics and Hyundai Green
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyoung and Hyundai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co 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 Samyoung Electronics 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 Samyoung Electronics Co 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 Samyoung Electronics i.e., Samyoung Electronics and Hyundai Green go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Hyundai Green
Assuming the 90 days trading horizon Samyoung Electronics is expected to generate 2.34 times less return on investment than Hyundai Green. But when comparing it to its historical volatility, Samyoung Electronics Co is 1.09 times less risky than Hyundai Green. It trades about 0.21 of its potential returns per unit of risk. Hyundai Green Food is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 1,164,000 in Hyundai Green Food on August 28, 2024 and sell it today you would earn a total of 177,000 from holding Hyundai Green Food or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Hyundai Green Food
Performance |
| Timeline |
| Samyoung Electronics |
| Hyundai Green Food |
Samyoung Electronics and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Hyundai Green
The main advantage of trading using opposite Samyoung Electronics and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics 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.The idea behind Samyoung Electronics Co and Hyundai Green Food pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. LG Energy Solution | Hyundai Green vs. SK Hynix |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |