Correlation Between Shinsegae Food and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food 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 Shinsegae Food and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and Hyundai Home Shopping, you can compare the effects of market volatilities on Shinsegae Food 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 Shinsegae Food with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Hyundai Home.
Diversification Opportunities for Shinsegae Food and Hyundai Home
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinsegae and Hyundai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food i.e., Shinsegae Food and Hyundai Home go up and down completely randomly.
Pair Corralation between Shinsegae Food and Hyundai Home
Assuming the 90 days trading horizon Shinsegae Food is expected to generate 2.39 times less return on investment than Hyundai Home. In addition to that, Shinsegae Food is 1.12 times more volatile than Hyundai Home Shopping. It trades about 0.02 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.04 per unit of volatility. If you would invest 3,880,886 in Hyundai Home Shopping on September 26, 2024 and sell it today you would earn a total of 764,114 from holding Hyundai Home Shopping or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Hyundai Home Shopping
Performance |
| Timeline |
| Shinsegae Food |
| Hyundai Home Shopping |
Shinsegae Food and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Hyundai Home
The main advantage of trading using opposite Shinsegae Food and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food 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.| Shinsegae Food vs. Woori Technology Investment | Shinsegae Food vs. Samsung Card Co | Shinsegae Food vs. Korea Real Estate | Shinsegae Food vs. CHOROKBAEM PANY Co |
| Hyundai Home vs. ITM Semiconductor Co | Hyundai Home vs. Shinsegae Food | Hyundai Home vs. Alton Sports CoLtd | Hyundai Home vs. Digital Multimedia Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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