Correlation Between Hyundai Home and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Hyundai Home and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Hyundai Home and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Home and Duksan Hi.
Diversification Opportunities for Hyundai Home and Duksan Hi
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Duksan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Home Shopping and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Hyundai Home i.e., Hyundai Home and Duksan Hi go up and down completely randomly.
Pair Corralation between Hyundai Home and Duksan Hi
Assuming the 90 days trading horizon Hyundai Home Shopping is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Home Shopping is 1.74 times less risky than Duksan Hi. The stock trades about -0.16 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 387,500 in Duksan Hi Metal on October 17, 2024 and sell it today you would earn a total of 12,500 from holding Duksan Hi Metal or generate 3.23% 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. Duksan Hi Metal
Performance |
| Timeline |
| Hyundai Home Shopping |
| Duksan Hi Metal |
Hyundai Home and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Home and Duksan Hi
The main advantage of trading using opposite Hyundai Home and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Home position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi'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 |
| Duksan Hi vs. Aprogen Healthcare Games | Duksan Hi vs. Nable Communications | Duksan Hi vs. Youngsin Metal Industrial | Duksan Hi vs. Digital Power Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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