Correlation Between Hyundai Rotem and Sejong Telecom
Can any of the company-specific risk be diversified away by investing in both Hyundai Rotem and Sejong Telecom 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 Rotem and Sejong Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Rotem Co and Sejong Telecom, you can compare the effects of market volatilities on Hyundai Rotem and Sejong Telecom 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 Rotem with a short position of Sejong Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Rotem and Sejong Telecom.
Diversification Opportunities for Hyundai Rotem and Sejong Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Sejong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Rotem Co and Sejong Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejong Telecom and Hyundai Rotem 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 Rotem Co are associated (or correlated) with Sejong Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejong Telecom has no effect on the direction of Hyundai Rotem i.e., Hyundai Rotem and Sejong Telecom go up and down completely randomly.
Pair Corralation between Hyundai Rotem and Sejong Telecom
If you would invest 39,400 in Sejong Telecom on October 24, 2024 and sell it today you would earn a total of 2,100 from holding Sejong Telecom or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Hyundai Rotem Co vs. Sejong Telecom
Performance |
| Timeline |
| Hyundai Rotem |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sejong Telecom |
Hyundai Rotem and Sejong Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Rotem and Sejong Telecom
The main advantage of trading using opposite Hyundai Rotem and Sejong Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Rotem position performs unexpectedly, Sejong Telecom 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 Sejong Telecom will offset losses from the drop in Sejong Telecom's long position.| Hyundai Rotem vs. Top Material Co | Hyundai Rotem vs. Samyung Trading Co | Hyundai Rotem vs. Hana Materials | Hyundai Rotem vs. Hyosung Advanced Materials |
| Sejong Telecom vs. Sam Chun Dang | Sejong Telecom vs. SAMRYOONG CoLtd | Sejong Telecom vs. BYON Co | Sejong Telecom vs. Sangsangin 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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