Correlation Between Samji Electronics and Hyundai
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Hyundai 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 Samji Electronics and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samji Electronics Co and Hyundai Motor, you can compare the effects of market volatilities on Samji Electronics and Hyundai 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 Samji Electronics with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Hyundai.
Diversification Opportunities for Samji Electronics and Hyundai
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samji and Hyundai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Samji Electronics 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 Samji Electronics Co are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Samji Electronics i.e., Samji Electronics and Hyundai go up and down completely randomly.
Pair Corralation between Samji Electronics and Hyundai
Assuming the 90 days trading horizon Samji Electronics is expected to generate 6.06 times less return on investment than Hyundai. But when comparing it to its historical volatility, Samji Electronics Co is 1.45 times less risky than Hyundai. It trades about 0.01 of its potential returns per unit of risk. Hyundai Motor is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,608,900 in Hyundai Motor on September 4, 2024 and sell it today you would earn a total of 6,991,100 from holding Hyundai Motor or generate 47.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Samji Electronics Co vs. Hyundai Motor
Performance |
| Timeline |
| Samji Electronics |
| Hyundai Motor |
Samji Electronics and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Hyundai
The main advantage of trading using opposite Samji Electronics and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Hyundai 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 will offset losses from the drop in Hyundai's long position.| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
| Hyundai vs. Eagon Industrial Co | Hyundai vs. Digital Power Communications | Hyundai vs. Songwon Industrial Co | Hyundai vs. Ssangyong Information Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |