Correlation Between Ssangyong Information and Hyundai Elevator
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and Hyundai Elevator 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 Ssangyong Information and Hyundai Elevator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and Hyundai Elevator, you can compare the effects of market volatilities on Ssangyong Information and Hyundai Elevator 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 Ssangyong Information with a short position of Hyundai Elevator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Hyundai Elevator.
Diversification Opportunities for Ssangyong Information and Hyundai Elevator
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssangyong and Hyundai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Hyundai Elevator in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Elevator and Ssangyong Information 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 Ssangyong Information Communication are associated (or correlated) with Hyundai Elevator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Elevator has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and Hyundai Elevator go up and down completely randomly.
Pair Corralation between Ssangyong Information and Hyundai Elevator
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Hyundai Elevator. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.23 times less risky than Hyundai Elevator. The stock trades about -0.08 of its potential returns per unit of risk. The Hyundai Elevator is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,881,451 in Hyundai Elevator on September 4, 2024 and sell it today you would earn a total of 1,308,549 from holding Hyundai Elevator or generate 33.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Hyundai Elevator
Performance |
| Timeline |
| Ssangyong Information |
| Hyundai Elevator |
Ssangyong Information and Hyundai Elevator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Hyundai Elevator
The main advantage of trading using opposite Ssangyong Information and Hyundai Elevator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, Hyundai Elevator 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 Elevator will offset losses from the drop in Hyundai Elevator's long position.| Ssangyong Information vs. InfoBank | Ssangyong Information vs. Sam Yang Foods | Ssangyong Information vs. Jeju Bank | Ssangyong Information vs. Hana Financial |
| Hyundai Elevator vs. ABOV Semiconductor Co | Hyundai Elevator vs. Sam Yang Foods | Hyundai Elevator vs. Ssangyong Information Communication | Hyundai Elevator vs. Hanmi Semiconductor Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |