Correlation Between Hyundai Elevator and FOODWELL
Can any of the company-specific risk be diversified away by investing in both Hyundai Elevator and FOODWELL 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 Elevator and FOODWELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Elevator and FOODWELL Co, you can compare the effects of market volatilities on Hyundai Elevator and FOODWELL 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 Elevator with a short position of FOODWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Elevator and FOODWELL.
Diversification Opportunities for Hyundai Elevator and FOODWELL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hyundai and FOODWELL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Elevator and FOODWELL Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOODWELL and Hyundai Elevator 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 Elevator are associated (or correlated) with FOODWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOODWELL has no effect on the direction of Hyundai Elevator i.e., Hyundai Elevator and FOODWELL go up and down completely randomly.
Pair Corralation between Hyundai Elevator and FOODWELL
Assuming the 90 days trading horizon Hyundai Elevator is expected to generate 1.4 times more return on investment than FOODWELL. However, Hyundai Elevator is 1.4 times more volatile than FOODWELL Co. It trades about 0.21 of its potential returns per unit of risk. FOODWELL Co is currently generating about -0.05 per unit of risk. If you would invest 4,670,000 in Hyundai Elevator on August 30, 2024 and sell it today you would earn a total of 620,000 from holding Hyundai Elevator or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Elevator vs. FOODWELL Co
Performance |
| Timeline |
| Hyundai Elevator |
| FOODWELL |
Hyundai Elevator and FOODWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Elevator and FOODWELL
The main advantage of trading using opposite Hyundai Elevator and FOODWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Elevator position performs unexpectedly, FOODWELL 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 FOODWELL will offset losses from the drop in FOODWELL's long position.| Hyundai Elevator vs. Namhae Chemical | Hyundai Elevator vs. Hanjoo Light Metal | Hyundai Elevator vs. LG Chemicals | Hyundai Elevator vs. Youngbo Chemical Co |
| FOODWELL vs. Hanjoo Light Metal | FOODWELL vs. Kbi Metal Co | FOODWELL vs. Seoul Broadcasting System | FOODWELL vs. Pyung Hwa Industrial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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