Correlation Between SMCoreInc and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both SMCoreInc 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 SMCoreInc and Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMCoreInc and Hyundai Green Food, you can compare the effects of market volatilities on SMCoreInc 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 SMCoreInc with a short position of Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMCoreInc and Hyundai Green.
Diversification Opportunities for SMCoreInc and Hyundai Green
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SMCoreInc and Hyundai is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SMCoreInc 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 SMCoreInc 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 SMCoreInc 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 SMCoreInc i.e., SMCoreInc and Hyundai Green go up and down completely randomly.
Pair Corralation between SMCoreInc and Hyundai Green
Assuming the 90 days trading horizon SMCoreInc is expected to under-perform the Hyundai Green. In addition to that, SMCoreInc is 1.7 times more volatile than Hyundai Green Food. It trades about -0.02 of its total potential returns per unit of risk. Hyundai Green Food is currently generating about 0.03 per unit of volatility. If you would invest 1,139,000 in Hyundai Green Food on August 26, 2024 and sell it today you would earn a total of 174,000 from holding Hyundai Green Food or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.23% |
| Values | Daily Returns |
SMCoreInc vs. Hyundai Green Food
Performance |
| Timeline |
| SMCoreInc |
| Hyundai Green Food |
SMCoreInc and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMCoreInc and Hyundai Green
The main advantage of trading using opposite SMCoreInc and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMCoreInc 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.| SMCoreInc vs. Hyundai Green Food | SMCoreInc vs. Shinsung Delta Tech | SMCoreInc vs. Korean Drug Co | SMCoreInc vs. QUALITAS SEMICONDUCTOR LTD |
| Hyundai Green vs. People Technology | Hyundai Green vs. Digital Multimedia Technology | Hyundai Green vs. NewFlex Technology Co | Hyundai Green vs. ChipsMedia |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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