Correlation Between Samsung Electronics and Hyundai Glovis
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hyundai Glovis 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 Samsung Electronics and Hyundai Glovis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Hyundai Glovis, you can compare the effects of market volatilities on Samsung Electronics and Hyundai Glovis 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 Samsung Electronics with a short position of Hyundai Glovis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hyundai Glovis.
Diversification Opportunities for Samsung Electronics and Hyundai Glovis
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Hyundai is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hyundai Glovis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Glovis and Samsung 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 Samsung Electronics Co are associated (or correlated) with Hyundai Glovis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Glovis has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hyundai Glovis go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hyundai Glovis
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.95 times more return on investment than Hyundai Glovis. However, Samsung Electronics Co is 1.06 times less risky than Hyundai Glovis. It trades about 0.09 of its potential returns per unit of risk. Hyundai Glovis is currently generating about -0.26 per unit of risk. If you would invest 4,300,000 in Samsung Electronics Co on December 1, 2024 and sell it today you would earn a total of 170,000 from holding Samsung Electronics Co or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hyundai Glovis
Performance |
| Timeline |
| Samsung Electronics |
| Hyundai Glovis |
Samsung Electronics and Hyundai Glovis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hyundai Glovis
The main advantage of trading using opposite Samsung Electronics and Hyundai Glovis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hyundai Glovis 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 Glovis will offset losses from the drop in Hyundai Glovis' long position.| Samsung Electronics vs. GAMEVIL | Samsung Electronics vs. Shinhan Inverse Silver | Samsung Electronics vs. Seoul Food Industrial | Samsung Electronics vs. Sempio Foods Co |
| Hyundai Glovis vs. Dongwoon Anatech Co | Hyundai Glovis vs. Ssangyong Materials Corp | Hyundai Glovis vs. KMH Hitech Co | Hyundai Glovis vs. MS Autotech CoLtd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance |