Correlation Between Hwangkum Steel and Shinsegae
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel and Shinsegae 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 Hwangkum Steel and Shinsegae into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwangkum Steel Technology and Shinsegae, you can compare the effects of market volatilities on Hwangkum Steel and Shinsegae 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 Hwangkum Steel with a short position of Shinsegae. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Shinsegae.
Diversification Opportunities for Hwangkum Steel and Shinsegae
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hwangkum and Shinsegae is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Shinsegae in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae and Hwangkum Steel 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 Hwangkum Steel Technology are associated (or correlated) with Shinsegae. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae has no effect on the direction of Hwangkum Steel i.e., Hwangkum Steel and Shinsegae go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Shinsegae
Assuming the 90 days trading horizon Hwangkum Steel is expected to generate 3.02 times less return on investment than Shinsegae. But when comparing it to its historical volatility, Hwangkum Steel Technology is 2.28 times less risky than Shinsegae. It trades about 0.22 of its potential returns per unit of risk. Shinsegae is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 13,270,000 in Shinsegae on November 28, 2024 and sell it today you would earn a total of 1,360,000 from holding Shinsegae or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Shinsegae
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Shinsegae |
Hwangkum Steel and Shinsegae Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Shinsegae
The main advantage of trading using opposite Hwangkum Steel and Shinsegae positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel position performs unexpectedly, Shinsegae 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 Shinsegae will offset losses from the drop in Shinsegae's long position.| Hwangkum Steel vs. System and Application | Hwangkum Steel vs. Daishin Information Communications | Hwangkum Steel vs. DataSolution | Hwangkum Steel vs. Daou Data Corp |
| Shinsegae vs. Haesung Industrial Co | Shinsegae vs. Automobile Pc | Shinsegae vs. Lotte Data Communication | Shinsegae vs. Korea 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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