Correlation Between Kukil Metal and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Kukil Metal 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 Kukil Metal and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukil Metal Co and Hyundai Home Shopping, you can compare the effects of market volatilities on Kukil Metal 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 Kukil Metal with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Hyundai Home.
Diversification Opportunities for Kukil Metal and Hyundai Home
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kukil and Hyundai is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal 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 Kukil Metal 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 Kukil Metal 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 Kukil Metal i.e., Kukil Metal and Hyundai Home go up and down completely randomly.
Pair Corralation between Kukil Metal and Hyundai Home
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the Hyundai Home. In addition to that, Kukil Metal is 2.42 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 0.0 per unit of volatility. If you would invest 5,149,365 in Hyundai Home Shopping on October 30, 2024 and sell it today you would lose (469,365) from holding Hyundai Home Shopping or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Hyundai Home Shopping
Performance |
| Timeline |
| Kukil Metal |
| Hyundai Home Shopping |
Kukil Metal and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Hyundai Home
The main advantage of trading using opposite Kukil Metal and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal 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.| Kukil Metal vs. Daejoo Electronic Materials | Kukil Metal vs. DB Insurance Co | Kukil Metal vs. RF Materials Co | Kukil Metal vs. Hyosung Advanced Materials |
| Hyundai Home vs. Daewoo Electronic Components | Hyundai Home vs. Jahwa Electronics Co | Hyundai Home vs. PJ Electronics Co | Hyundai Home vs. Dongbang Transport Logistics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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