Correlation Between Hyundai Mobis and Sejong Telecom
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Sejong Telecom 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 Hyundai Mobis and Sejong Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Sejong Telecom, you can compare the effects of market volatilities on Hyundai Mobis and Sejong Telecom 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 Hyundai Mobis with a short position of Sejong Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Sejong Telecom.
Diversification Opportunities for Hyundai Mobis and Sejong Telecom
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Sejong is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Sejong Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejong Telecom and Hyundai Mobis 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 Hyundai Mobis are associated (or correlated) with Sejong Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejong Telecom has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Sejong Telecom go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Sejong Telecom
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 1.32 times more return on investment than Sejong Telecom. However, Hyundai Mobis is 1.32 times more volatile than Sejong Telecom. It trades about -0.03 of its potential returns per unit of risk. Sejong Telecom is currently generating about -0.39 per unit of risk. If you would invest 24,850,000 in Hyundai Mobis on August 31, 2024 and sell it today you would lose (300,000) from holding Hyundai Mobis or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyundai Mobis vs. Sejong Telecom
Performance |
| Timeline |
| Hyundai Mobis |
| Sejong Telecom |
Hyundai Mobis and Sejong Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and Sejong Telecom
The main advantage of trading using opposite Hyundai Mobis and Sejong Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Sejong Telecom 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 Sejong Telecom will offset losses from the drop in Sejong Telecom's long position.| Hyundai Mobis vs. Solution Advanced Technology | Hyundai Mobis vs. Korea Shipbuilding Offshore | Hyundai Mobis vs. Digital Multimedia Technology | Hyundai Mobis vs. Konan Technology |
| Sejong Telecom vs. AfreecaTV Co | Sejong Telecom vs. Seegene | Sejong Telecom vs. SS TECH | Sejong Telecom vs. Busan Industrial 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 Stocks Directory module to find actively traded stocks across global markets.
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