Correlation Between Hyundai Engineering and DoubleU Games
Can any of the company-specific risk be diversified away by investing in both Hyundai Engineering and DoubleU Games 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 DoubleU Games 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 DoubleU Games Co, you can compare the effects of market volatilities on Hyundai Engineering and DoubleU Games 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 DoubleU Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Engineering and DoubleU Games.
Diversification Opportunities for Hyundai Engineering and DoubleU Games
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and DoubleU is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Engineering Plastics and DoubleU Games Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleU Games 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 DoubleU Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleU Games has no effect on the direction of Hyundai Engineering i.e., Hyundai Engineering and DoubleU Games go up and down completely randomly.
Pair Corralation between Hyundai Engineering and DoubleU Games
Assuming the 90 days trading horizon Hyundai Engineering Plastics is expected to under-perform the DoubleU Games. In addition to that, Hyundai Engineering is 1.11 times more volatile than DoubleU Games Co. It trades about -0.05 of its total potential returns per unit of risk. DoubleU Games Co is currently generating about -0.04 per unit of volatility. If you would invest 5,130,000 in DoubleU Games Co on October 30, 2024 and sell it today you would lose (135,000) from holding DoubleU Games Co or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Engineering Plastics vs. DoubleU Games Co
Performance |
| Timeline |
| Hyundai Engineering |
| DoubleU Games |
Hyundai Engineering and DoubleU Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Engineering and DoubleU Games
The main advantage of trading using opposite Hyundai Engineering and DoubleU Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Engineering position performs unexpectedly, DoubleU Games 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 DoubleU Games will offset losses from the drop in DoubleU Games' long position.| Hyundai Engineering vs. Kakao Games Corp | Hyundai Engineering vs. SEOJEON ELECTRIC MACHINERY | Hyundai Engineering vs. Hanshin Construction Co | Hyundai Engineering vs. Dongwoo Farm To |
| DoubleU Games vs. Global Standard Technology | DoubleU Games vs. Bosung Power Technology | DoubleU Games vs. Taegu Broadcasting | DoubleU Games vs. Clean Science 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 CEOs Directory module to screen CEOs from public companies around the world.
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