Correlation Between Daewon Media and Hyundai
Can any of the company-specific risk be diversified away by investing in both Daewon Media 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 Daewon Media and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewon Media Co and Hyundai Motor Co, you can compare the effects of market volatilities on Daewon Media 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 Daewon Media with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and Hyundai.
Diversification Opportunities for Daewon Media and Hyundai
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daewon and Hyundai is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Daewon Media 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 Daewon Media 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 Daewon Media i.e., Daewon Media and Hyundai go up and down completely randomly.
Pair Corralation between Daewon Media and Hyundai
Assuming the 90 days trading horizon Daewon Media Co is expected to under-perform the Hyundai. In addition to that, Daewon Media is 1.03 times more volatile than Hyundai Motor Co. It trades about -0.04 of its total potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.08 per unit of volatility. If you would invest 8,471,439 in Hyundai Motor Co on October 29, 2024 and sell it today you would earn a total of 7,638,561 from holding Hyundai Motor Co or generate 90.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewon Media Co vs. Hyundai Motor Co
Performance |
| Timeline |
| Daewon Media |
| Hyundai Motor |
Daewon Media and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and Hyundai
The main advantage of trading using opposite Daewon Media and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media 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.| Daewon Media vs. Stic Investments | Daewon Media vs. Korean Drug Co | Daewon Media vs. Samyang Foods Co | Daewon Media vs. Sewoon Medical Co |
| Hyundai vs. Innowireless Co | Hyundai vs. LG Household Healthcare | Hyundai vs. SEOWONINTECHCoLtd | Hyundai vs. FNSTech 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |