Correlation Between Okins Electronics and Hyundai
Can any of the company-specific risk be diversified away by investing in both Okins Electronics 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 Okins Electronics and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Hyundai Motor, you can compare the effects of market volatilities on Okins Electronics 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 Okins Electronics with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Hyundai.
Diversification Opportunities for Okins Electronics and Hyundai
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Okins and Hyundai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Okins Electronics 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 Okins Electronics 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 Okins Electronics i.e., Okins Electronics and Hyundai go up and down completely randomly.
Pair Corralation between Okins Electronics and Hyundai
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Hyundai. In addition to that, Okins Electronics is 2.54 times more volatile than Hyundai Motor. It trades about -0.03 of its total potential returns per unit of risk. Hyundai Motor is currently generating about 0.05 per unit of volatility. If you would invest 14,251,500 in Hyundai Motor on September 3, 2024 and sell it today you would earn a total of 7,598,500 from holding Hyundai Motor or generate 53.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okins Electronics Co vs. Hyundai Motor
Performance |
| Timeline |
| Okins Electronics |
| Hyundai Motor |
Okins Electronics and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Hyundai
The main advantage of trading using opposite Okins Electronics and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics 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.| Okins Electronics vs. DB Financial Investment | Okins Electronics vs. Polaris Office Corp | Okins Electronics vs. Innowireless Co | Okins Electronics vs. NICE Information Service |
| Hyundai vs. Dongbu Insurance Co | Hyundai vs. Okins Electronics Co | Hyundai vs. Total Soft Bank | Hyundai vs. Samji Electronics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |