Correlation Between Koryo Credit and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Hyundai Home 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 Koryo Credit and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Hyundai Home Shopping, you can compare the effects of market volatilities on Koryo Credit and Hyundai Home 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 Koryo Credit with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Hyundai Home.
Diversification Opportunities for Koryo Credit and Hyundai Home
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koryo and Hyundai is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Koryo Credit i.e., Koryo Credit and Hyundai Home go up and down completely randomly.
Pair Corralation between Koryo Credit and Hyundai Home
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.52 times more return on investment than Hyundai Home. However, Koryo Credit Information is 1.93 times less risky than Hyundai Home. It trades about -0.06 of its potential returns per unit of risk. Hyundai Home Shopping is currently generating about -0.21 per unit of risk. If you would invest 1,002,346 in Koryo Credit Information on October 22, 2024 and sell it today you would lose (7,346) from holding Koryo Credit Information or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Hyundai Home Shopping
Performance |
| Timeline |
| Koryo Credit Information |
| Hyundai Home Shopping |
Koryo Credit and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Hyundai Home
The main advantage of trading using opposite Koryo Credit and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Hyundai Home 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 Home will offset losses from the drop in Hyundai Home's long position.| Koryo Credit vs. Lotte Non Life Insurance | Koryo Credit vs. CKH Food Health | Koryo Credit vs. Shinhan Financial Group | Koryo Credit vs. LG Household Healthcare |
| Hyundai Home vs. Kukil Metal Co | Hyundai Home vs. Koryo Credit Information | Hyundai Home vs. Hyundai Industrial Co | Hyundai Home vs. Daejung Chemicals Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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