Correlation Between Hyundai Glovis and ICD
Can any of the company-specific risk be diversified away by investing in both Hyundai Glovis and ICD 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 ICD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Glovis and ICD Co, you can compare the effects of market volatilities on Hyundai Glovis and ICD 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 ICD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Glovis and ICD.
Diversification Opportunities for Hyundai Glovis and ICD
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and ICD is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Glovis and ICD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICD Co 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 ICD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICD Co has no effect on the direction of Hyundai Glovis i.e., Hyundai Glovis and ICD go up and down completely randomly.
Pair Corralation between Hyundai Glovis and ICD
Assuming the 90 days trading horizon Hyundai Glovis is expected to generate 2.8 times less return on investment than ICD. But when comparing it to its historical volatility, Hyundai Glovis is 1.52 times less risky than ICD. It trades about 0.04 of its potential returns per unit of risk. ICD Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 477,500 in ICD Co on September 3, 2024 and sell it today you would earn a total of 18,500 from holding ICD Co or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Glovis vs. ICD Co
Performance |
| Timeline |
| Hyundai Glovis |
| ICD Co |
Hyundai Glovis and ICD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Glovis and ICD
The main advantage of trading using opposite Hyundai Glovis and ICD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Glovis position performs unexpectedly, ICD 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 ICD will offset losses from the drop in ICD's long position.| Hyundai Glovis vs. Jeju Bank | Hyundai Glovis vs. Pureun Mutual Savings | Hyundai Glovis vs. BNK Financial Group | Hyundai Glovis vs. Incar Financial Service |
| ICD vs. SFA Engineering | ICD vs. APS Holdings | ICD vs. Soulbrain Holdings Co | ICD vs. JUSUNG ENGINEERING 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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