Correlation Between Tae Kyung and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and Hyundai Home 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 Tae Kyung and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and Hyundai Home Shopping, you can compare the effects of market volatilities on Tae Kyung and Hyundai Home 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 Tae Kyung with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and Hyundai Home.
Diversification Opportunities for Tae Kyung and Hyundai Home
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tae and Hyundai is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping and Tae Kyung 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 Tae Kyung Chemical are associated (or correlated) with Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Tae Kyung i.e., Tae Kyung and Hyundai Home go up and down completely randomly.
Pair Corralation between Tae Kyung and Hyundai Home
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to generate 1.18 times more return on investment than Hyundai Home. However, Tae Kyung is 1.18 times more volatile than Hyundai Home Shopping. It trades about 0.01 of its potential returns per unit of risk. Hyundai Home Shopping is currently generating about -0.01 per unit of risk. If you would invest 1,108,223 in Tae Kyung Chemical on October 7, 2024 and sell it today you would earn a total of 15,777 from holding Tae Kyung Chemical or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. Hyundai Home Shopping
Performance |
| Timeline |
| Tae Kyung Chemical |
| Hyundai Home Shopping |
Tae Kyung and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and Hyundai Home
The main advantage of trading using opposite Tae Kyung and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, Hyundai Home 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 Home will offset losses from the drop in Hyundai Home's long position.| Tae Kyung vs. Innowireless Co | Tae Kyung vs. Next Entertainment World | Tae Kyung vs. SAMG Entertainment Co | Tae Kyung vs. JYP Entertainment Corp |
| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Daewoo SBI SPAC | Hyundai Home vs. Dream Security co | Hyundai Home vs. Microfriend |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |