Correlation Between Wonbang Tech and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech 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 Wonbang Tech and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and Hyundai Home Shopping, you can compare the effects of market volatilities on Wonbang Tech 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 Wonbang Tech with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Hyundai Home.
Diversification Opportunities for Wonbang Tech and Hyundai Home
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wonbang and Hyundai is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co 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 Wonbang Tech 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 Wonbang Tech Co 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 Wonbang Tech i.e., Wonbang Tech and Hyundai Home go up and down completely randomly.
Pair Corralation between Wonbang Tech and Hyundai Home
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the Hyundai Home. In addition to that, Wonbang Tech is 1.12 times more volatile than Hyundai Home Shopping. It trades about 0.0 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.18 per unit of volatility. If you would invest 4,840,000 in Hyundai Home Shopping on December 1, 2024 and sell it today you would earn a total of 370,000 from holding Hyundai Home Shopping or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Hyundai Home Shopping
Performance |
| Timeline |
| Wonbang Tech |
| Hyundai Home Shopping |
Wonbang Tech and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Hyundai Home
The main advantage of trading using opposite Wonbang Tech and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech 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.| Wonbang Tech vs. Organic Special Pet | Wonbang Tech vs. Namyang Dairy | Wonbang Tech vs. Seoul Food Industrial | Wonbang Tech vs. FOODWELL Co |
| Hyundai Home vs. Alton Sports CoLtd | Hyundai Home vs. PLAYWITH | Hyundai Home vs. Sangsin Energy Display | Hyundai Home vs. Lotte Non Life Insurance |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |