Correlation Between Hyunwoo Industrial and Green Cross
Can any of the company-specific risk be diversified away by investing in both Hyunwoo Industrial and Green Cross 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 Green Cross 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 Green Cross Medical, you can compare the effects of market volatilities on Hyunwoo Industrial and Green Cross 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 Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyunwoo Industrial and Green Cross.
Diversification Opportunities for Hyunwoo Industrial and Green Cross
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hyunwoo and Green is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hyunwoo Industrial Co and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical 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 Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Hyunwoo Industrial i.e., Hyunwoo Industrial and Green Cross go up and down completely randomly.
Pair Corralation between Hyunwoo Industrial and Green Cross
Assuming the 90 days trading horizon Hyunwoo Industrial Co is expected to generate 1.14 times more return on investment than Green Cross. However, Hyunwoo Industrial is 1.14 times more volatile than Green Cross Medical. It trades about 0.1 of its potential returns per unit of risk. Green Cross Medical is currently generating about 0.01 per unit of risk. If you would invest 247,000 in Hyunwoo Industrial Co on September 19, 2024 and sell it today you would earn a total of 16,500 from holding Hyunwoo Industrial Co or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyunwoo Industrial Co vs. Green Cross Medical
Performance |
| Timeline |
| Hyunwoo Industrial |
| Green Cross Medical |
Hyunwoo Industrial and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyunwoo Industrial and Green Cross
The main advantage of trading using opposite Hyunwoo Industrial and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyunwoo Industrial position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| Hyunwoo Industrial vs. Kukil Metal Co | Hyunwoo Industrial vs. Dongbang Transport Logistics | Hyunwoo Industrial vs. Samyang Foods Co | Hyunwoo Industrial vs. Foodnamoo |
| Green Cross vs. Lion Chemtech Co | Green Cross vs. Cots Technology Co | Green Cross vs. THiRA UTECH LTD | Green Cross vs. PJ Metal 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |