Correlation Between Hyunwoo Industrial and FnGuide
Can any of the company-specific risk be diversified away by investing in both Hyunwoo Industrial and FnGuide 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 Hyunwoo Industrial and FnGuide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyunwoo Industrial Co and FnGuide, you can compare the effects of market volatilities on Hyunwoo Industrial and FnGuide 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 Hyunwoo Industrial with a short position of FnGuide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyunwoo Industrial and FnGuide.
Diversification Opportunities for Hyunwoo Industrial and FnGuide
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyunwoo and FnGuide is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyunwoo Industrial Co and FnGuide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FnGuide and Hyunwoo Industrial 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 Hyunwoo Industrial Co are associated (or correlated) with FnGuide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FnGuide has no effect on the direction of Hyunwoo Industrial i.e., Hyunwoo Industrial and FnGuide go up and down completely randomly.
Pair Corralation between Hyunwoo Industrial and FnGuide
Assuming the 90 days trading horizon Hyunwoo Industrial Co is expected to generate 1.14 times more return on investment than FnGuide. However, Hyunwoo Industrial is 1.14 times more volatile than FnGuide. It trades about -0.14 of its potential returns per unit of risk. FnGuide is currently generating about -0.61 per unit of risk. If you would invest 283,000 in Hyunwoo Industrial Co on August 29, 2024 and sell it today you would lose (20,000) from holding Hyunwoo Industrial Co or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyunwoo Industrial Co vs. FnGuide
Performance |
| Timeline |
| Hyunwoo Industrial |
| FnGuide |
Hyunwoo Industrial and FnGuide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyunwoo Industrial and FnGuide
The main advantage of trading using opposite Hyunwoo Industrial and FnGuide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyunwoo Industrial position performs unexpectedly, FnGuide 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 FnGuide will offset losses from the drop in FnGuide's long position.| Hyunwoo Industrial vs. SK Hynix | Hyunwoo Industrial vs. LX Semicon Co | Hyunwoo Industrial vs. Tokai Carbon Korea | Hyunwoo Industrial vs. People Technology |
| FnGuide vs. InnoTherapy | FnGuide vs. Taeyang Metal Industrial | FnGuide vs. Daiyang Metal Co | FnGuide vs. Hyunwoo Industrial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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