Correlation Between Hyundai Glovis and Hyundai Engineering
Can any of the company-specific risk be diversified away by investing in both Hyundai Glovis and Hyundai Engineering 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 Glovis and Hyundai Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Glovis and Hyundai Engineering Construction, you can compare the effects of market volatilities on Hyundai Glovis and Hyundai Engineering 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 Glovis with a short position of Hyundai Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Glovis and Hyundai Engineering.
Diversification Opportunities for Hyundai Glovis and Hyundai Engineering
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Hyundai is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Glovis and Hyundai Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Engineering and Hyundai Glovis 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 Glovis are associated (or correlated) with Hyundai Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Engineering has no effect on the direction of Hyundai Glovis i.e., Hyundai Glovis and Hyundai Engineering go up and down completely randomly.
Pair Corralation between Hyundai Glovis and Hyundai Engineering
Assuming the 90 days trading horizon Hyundai Glovis is expected to generate 1.06 times more return on investment than Hyundai Engineering. However, Hyundai Glovis is 1.06 times more volatile than Hyundai Engineering Construction. It trades about 0.07 of its potential returns per unit of risk. Hyundai Engineering Construction is currently generating about 0.01 per unit of risk. If you would invest 7,520,604 in Hyundai Glovis on November 27, 2024 and sell it today you would earn a total of 6,589,396 from holding Hyundai Glovis or generate 87.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hyundai Glovis vs. Hyundai Engineering Constructi
Performance |
| Timeline |
| Hyundai Glovis |
| Hyundai Engineering |
Hyundai Glovis and Hyundai Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Glovis and Hyundai Engineering
The main advantage of trading using opposite Hyundai Glovis and Hyundai Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Glovis position performs unexpectedly, Hyundai Engineering 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 Engineering will offset losses from the drop in Hyundai Engineering's long position.| Hyundai Glovis vs. Dongkuk Structures Construction | Hyundai Glovis vs. Korea Steel Co | Hyundai Glovis vs. Samlip General Foods | Hyundai Glovis vs. GS Engineering Construction |
| Hyundai Engineering vs. Ilji Technology Co | Hyundai Engineering vs. Aprogen Healthcare Games | Hyundai Engineering vs. LG Household Healthcare | Hyundai Engineering vs. NewFlex 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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