Correlation Between Sungdo Engineering and HYUNDAI BIOLAND
Can any of the company-specific risk be diversified away by investing in both Sungdo Engineering and HYUNDAI BIOLAND 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 Sungdo Engineering and HYUNDAI BIOLAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungdo Engineering Construction and HYUNDAI BIOLAND CoLtd, you can compare the effects of market volatilities on Sungdo Engineering and HYUNDAI BIOLAND 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 Sungdo Engineering with a short position of HYUNDAI BIOLAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungdo Engineering and HYUNDAI BIOLAND.
Diversification Opportunities for Sungdo Engineering and HYUNDAI BIOLAND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sungdo and HYUNDAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sungdo Engineering Constructio and HYUNDAI BIOLAND CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYUNDAI BIOLAND CoLtd and Sungdo Engineering 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 Sungdo Engineering Construction are associated (or correlated) with HYUNDAI BIOLAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYUNDAI BIOLAND CoLtd has no effect on the direction of Sungdo Engineering i.e., Sungdo Engineering and HYUNDAI BIOLAND go up and down completely randomly.
Pair Corralation between Sungdo Engineering and HYUNDAI BIOLAND
If you would invest 448,000 in Sungdo Engineering Construction on September 15, 2024 and sell it today you would earn a total of 5,000 from holding Sungdo Engineering Construction or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sungdo Engineering Constructio vs. HYUNDAI BIOLAND CoLtd
Performance |
| Timeline |
| Sungdo Engineering |
| HYUNDAI BIOLAND CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sungdo Engineering and HYUNDAI BIOLAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungdo Engineering and HYUNDAI BIOLAND
The main advantage of trading using opposite Sungdo Engineering and HYUNDAI BIOLAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungdo Engineering position performs unexpectedly, HYUNDAI BIOLAND 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 BIOLAND will offset losses from the drop in HYUNDAI BIOLAND's long position.| Sungdo Engineering vs. Korea New Network | Sungdo Engineering vs. Solution Advanced Technology | Sungdo Engineering vs. Busan Industrial Co | Sungdo Engineering vs. Busan Ind |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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