Correlation Between Hyundai Home and Seah Steel
Can any of the company-specific risk be diversified away by investing in both Hyundai Home and Seah Steel 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 Seah Steel 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 Seah Steel Corp, you can compare the effects of market volatilities on Hyundai Home and Seah Steel 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 Seah Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Home and Seah Steel.
Diversification Opportunities for Hyundai Home and Seah Steel
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and Seah is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Home Shopping and Seah Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seah Steel Corp 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 Seah Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seah Steel Corp has no effect on the direction of Hyundai Home i.e., Hyundai Home and Seah Steel go up and down completely randomly.
Pair Corralation between Hyundai Home and Seah Steel
Assuming the 90 days trading horizon Hyundai Home Shopping is expected to generate 1.21 times more return on investment than Seah Steel. However, Hyundai Home is 1.21 times more volatile than Seah Steel Corp. It trades about 0.06 of its potential returns per unit of risk. Seah Steel Corp is currently generating about 0.05 per unit of risk. If you would invest 4,385,000 in Hyundai Home Shopping on October 11, 2024 and sell it today you would earn a total of 75,000 from holding Hyundai Home Shopping or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hyundai Home Shopping vs. Seah Steel Corp
Performance |
| Timeline |
| Hyundai Home Shopping |
| Seah Steel Corp |
Hyundai Home and Seah Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Home and Seah Steel
The main advantage of trading using opposite Hyundai Home and Seah Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Home position performs unexpectedly, Seah Steel 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 Seah Steel will offset losses from the drop in Seah Steel's long position.| Hyundai Home vs. Nh Investment And | Hyundai Home vs. Seoyon Topmetal Co | Hyundai Home vs. DSC Investment | Hyundai Home vs. Worldex Industry Trading |
| Seah Steel vs. Hyundai Home Shopping | Seah Steel vs. Asia Technology Co | Seah Steel vs. ENF Technology Co | Seah Steel vs. Ilji Technology Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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