Correlation Between Hyundai Home and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both Hyundai Home and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on Hyundai Home and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Home and ASTORY CoLtd.
Diversification Opportunities for Hyundai Home and ASTORY CoLtd
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and ASTORY is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Home Shopping and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Hyundai Home i.e., Hyundai Home and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between Hyundai Home and ASTORY CoLtd
Assuming the 90 days trading horizon Hyundai Home Shopping is expected to generate 0.67 times more return on investment than ASTORY CoLtd. However, Hyundai Home Shopping is 1.49 times less risky than ASTORY CoLtd. It trades about -0.01 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about -0.09 per unit of risk. If you would invest 5,196,521 in Hyundai Home Shopping on August 31, 2024 and sell it today you would lose (666,521) from holding Hyundai Home Shopping or give up 12.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Hyundai Home Shopping vs. ASTORY CoLtd
Performance |
| Timeline |
| Hyundai Home Shopping |
| ASTORY CoLtd |
Hyundai Home and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Home and ASTORY CoLtd
The main advantage of trading using opposite Hyundai Home and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Home position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Daewoo SBI SPAC | Hyundai Home vs. Dream Security co | Hyundai Home vs. Microfriend |
| ASTORY CoLtd vs. Hansol Homedeco Co | ASTORY CoLtd vs. Cuckoo Homesys Co | ASTORY CoLtd vs. Daedong Steel Co | ASTORY CoLtd vs. Hyundai Home Shopping |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |