Correlation Between Kaonmedia and Hyundai
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and Hyundai 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 Kaonmedia and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Hyundai Motor, you can compare the effects of market volatilities on Kaonmedia and Hyundai 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 Kaonmedia with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Hyundai.
Diversification Opportunities for Kaonmedia and Hyundai
Very poor diversification
The 3 months correlation between Kaonmedia and Hyundai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Kaonmedia 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 Kaonmedia Co are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Kaonmedia i.e., Kaonmedia and Hyundai go up and down completely randomly.
Pair Corralation between Kaonmedia and Hyundai
Assuming the 90 days trading horizon Kaonmedia Co is expected to under-perform the Hyundai. In addition to that, Kaonmedia is 1.18 times more volatile than Hyundai Motor. It trades about -0.15 of its total potential returns per unit of risk. Hyundai Motor is currently generating about -0.07 per unit of volatility. If you would invest 24,410,000 in Hyundai Motor on September 2, 2024 and sell it today you would lose (2,560,000) from holding Hyundai Motor or give up 10.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. Hyundai Motor
Performance |
| Timeline |
| Kaonmedia |
| Hyundai Motor |
Kaonmedia and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Hyundai
The main advantage of trading using opposite Kaonmedia and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, Hyundai 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 will offset losses from the drop in Hyundai's long position.| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
| Hyundai vs. Semyung Electric Machinery | Hyundai vs. Kaonmedia Co | Hyundai vs. YG Entertainment | Hyundai vs. SM Entertainment 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |