Correlation Between Shinsegae Food and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food and Hyundai Green 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 Green 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 Green Food, you can compare the effects of market volatilities on Shinsegae Food and Hyundai Green 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 Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Hyundai Green.
Diversification Opportunities for Shinsegae Food and Hyundai Green
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinsegae and Hyundai is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food and Hyundai Green Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Green Food 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 Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Green Food has no effect on the direction of Shinsegae Food i.e., Shinsegae Food and Hyundai Green go up and down completely randomly.
Pair Corralation between Shinsegae Food and Hyundai Green
Assuming the 90 days trading horizon Shinsegae Food is expected to under-perform the Hyundai Green. In addition to that, Shinsegae Food is 1.22 times more volatile than Hyundai Green Food. It trades about -0.41 of its total potential returns per unit of risk. Hyundai Green Food is currently generating about -0.01 per unit of volatility. If you would invest 1,423,000 in Hyundai Green Food on November 9, 2024 and sell it today you would lose (5,000) from holding Hyundai Green Food or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Hyundai Green Food
Performance |
| Timeline |
| Shinsegae Food |
| Hyundai Green Food |
Shinsegae Food and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Hyundai Green
The main advantage of trading using opposite Shinsegae Food and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food position performs unexpectedly, Hyundai Green 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 Green will offset losses from the drop in Hyundai Green's long position.| Shinsegae Food vs. Tae Kyung Chemical | Shinsegae Food vs. Solus Advanced Materials | Shinsegae Food vs. RF Materials Co | Shinsegae Food vs. EV Advanced Material |
| Hyundai Green vs. SEOJEON ELECTRIC MACHINERY | Hyundai Green vs. Playgram Co | Hyundai Green vs. Iljin Display | Hyundai Green vs. Kyeryong Construction 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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