Correlation Between Hyundai Engineering and ENERGYMACHINERY KOREA
Can any of the company-specific risk be diversified away by investing in both Hyundai Engineering and ENERGYMACHINERY KOREA 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 Engineering and ENERGYMACHINERY KOREA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Engineering Plastics and ENERGYMACHINERY KOREA CoLtd, you can compare the effects of market volatilities on Hyundai Engineering and ENERGYMACHINERY KOREA 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 Engineering with a short position of ENERGYMACHINERY KOREA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Engineering and ENERGYMACHINERY KOREA.
Diversification Opportunities for Hyundai Engineering and ENERGYMACHINERY KOREA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hyundai and ENERGYMACHINERY is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Engineering Plastics and ENERGYMACHINERY KOREA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGYMACHINERY KOREA and Hyundai Engineering 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 Engineering Plastics are associated (or correlated) with ENERGYMACHINERY KOREA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGYMACHINERY KOREA has no effect on the direction of Hyundai Engineering i.e., Hyundai Engineering and ENERGYMACHINERY KOREA go up and down completely randomly.
Pair Corralation between Hyundai Engineering and ENERGYMACHINERY KOREA
Assuming the 90 days trading horizon Hyundai Engineering Plastics is expected to generate 0.44 times more return on investment than ENERGYMACHINERY KOREA. However, Hyundai Engineering Plastics is 2.28 times less risky than ENERGYMACHINERY KOREA. It trades about 0.04 of its potential returns per unit of risk. ENERGYMACHINERY KOREA CoLtd is currently generating about 0.01 per unit of risk. If you would invest 344,000 in Hyundai Engineering Plastics on November 3, 2024 and sell it today you would earn a total of 1,500 from holding Hyundai Engineering Plastics or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Engineering Plastics vs. ENERGYMACHINERY KOREA CoLtd
Performance |
| Timeline |
| Hyundai Engineering |
| ENERGYMACHINERY KOREA |
Hyundai Engineering and ENERGYMACHINERY KOREA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Engineering and ENERGYMACHINERY KOREA
The main advantage of trading using opposite Hyundai Engineering and ENERGYMACHINERY KOREA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Engineering position performs unexpectedly, ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA will offset losses from the drop in ENERGYMACHINERY KOREA's long position.| Hyundai Engineering vs. Coloray International Investment | Hyundai Engineering vs. Nable Communications | Hyundai Engineering vs. DSC Investment | Hyundai Engineering vs. Sangsangin Investment Securities |
| ENERGYMACHINERY KOREA vs. DSC Investment | ENERGYMACHINERY KOREA vs. Woori Technology | ENERGYMACHINERY KOREA vs. TS Investment Corp | ENERGYMACHINERY KOREA vs. Stic Investments |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |