Correlation Between Hyundai Home and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Hyundai Home and Kukil Metal 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 Hyundai Home and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Home Shopping and Kukil Metal Co, you can compare the effects of market volatilities on Hyundai Home and Kukil Metal 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 Hyundai Home with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Home and Kukil Metal.
Diversification Opportunities for Hyundai Home and Kukil Metal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Kukil is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Home Shopping and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Hyundai Home 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 Hyundai Home Shopping are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Hyundai Home i.e., Hyundai Home and Kukil Metal go up and down completely randomly.
Pair Corralation between Hyundai Home and Kukil Metal
Assuming the 90 days trading horizon Hyundai Home Shopping is expected to generate 0.79 times more return on investment than Kukil Metal. However, Hyundai Home Shopping is 1.27 times less risky than Kukil Metal. It trades about 0.01 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.05 per unit of risk. If you would invest 4,300,000 in Hyundai Home Shopping on October 17, 2024 and sell it today you would earn a total of 110,000 from holding Hyundai Home Shopping or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Home Shopping vs. Kukil Metal Co
Performance |
| Timeline |
| Hyundai Home Shopping |
| Kukil Metal |
Hyundai Home and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Home and Kukil Metal
The main advantage of trading using opposite Hyundai Home and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Home position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Hyundai Home vs. Korean Air Lines | Hyundai Home vs. DSC Investment | Hyundai Home vs. Alton Sports CoLtd | Hyundai Home vs. Cloud Air CoLtd |
| Kukil Metal vs. SEOWONINTECHCoLtd | Kukil Metal vs. Daehan Steel | Kukil Metal vs. Fine Besteel Co | Kukil Metal vs. Han Kook Steel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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