Correlation Between Daeduck Electronics and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics 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 Daeduck Electronics and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daeduck Electronics Co and Hyundai Home Shopping, you can compare the effects of market volatilities on Daeduck Electronics 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 Daeduck Electronics with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and Hyundai Home.
Diversification Opportunities for Daeduck Electronics and Hyundai Home
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Daeduck and Hyundai is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co 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 Daeduck 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 Daeduck Electronics Co 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 Daeduck Electronics i.e., Daeduck Electronics and Hyundai Home go up and down completely randomly.
Pair Corralation between Daeduck Electronics and Hyundai Home
Assuming the 90 days trading horizon Daeduck Electronics Co is expected to generate 0.47 times more return on investment than Hyundai Home. However, Daeduck Electronics Co is 2.11 times less risky than Hyundai Home. It trades about 0.2 of its potential returns per unit of risk. Hyundai Home Shopping is currently generating about -0.12 per unit of risk. If you would invest 661,000 in Daeduck Electronics Co on October 13, 2024 and sell it today you would earn a total of 18,000 from holding Daeduck Electronics Co or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. Hyundai Home Shopping
Performance |
| Timeline |
| Daeduck Electronics |
| Hyundai Home Shopping |
Daeduck Electronics and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and Hyundai Home
The main advantage of trading using opposite Daeduck Electronics and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics 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.| Daeduck Electronics vs. Ssangyong Information Communication | Daeduck Electronics vs. Duksan Hi Metal | Daeduck Electronics vs. PJ Metal Co | Daeduck Electronics vs. Kbi Metal Co |
| Hyundai Home vs. ECSTELECOM Co | Hyundai Home vs. SK Telecom Co | Hyundai Home vs. Handok Clean Tech | Hyundai Home vs. Ssangyong Information Communication |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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