Correlation Between Dongkuk Structures and Hyundai
Can any of the company-specific risk be diversified away by investing in both Dongkuk Structures and Hyundai 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 Dongkuk Structures and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongkuk Structures Construction and Hyundai Motor, you can compare the effects of market volatilities on Dongkuk Structures and Hyundai 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 Dongkuk Structures with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongkuk Structures and Hyundai.
Diversification Opportunities for Dongkuk Structures and Hyundai
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongkuk and Hyundai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dongkuk Structures Constructio and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Dongkuk Structures 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 Dongkuk Structures Construction are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Dongkuk Structures i.e., Dongkuk Structures and Hyundai go up and down completely randomly.
Pair Corralation between Dongkuk Structures and Hyundai
Assuming the 90 days trading horizon Dongkuk Structures Construction is expected to under-perform the Hyundai. In addition to that, Dongkuk Structures is 1.2 times more volatile than Hyundai Motor. It trades about -0.03 of its total potential returns per unit of risk. Hyundai Motor is currently generating about -0.01 per unit of volatility. If you would invest 23,101,600 in Hyundai Motor on November 3, 2024 and sell it today you would lose (2,501,600) from holding Hyundai Motor or give up 10.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongkuk Structures Constructio vs. Hyundai Motor
Performance |
| Timeline |
| Dongkuk Structures |
| Hyundai Motor |
Dongkuk Structures and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongkuk Structures and Hyundai
The main advantage of trading using opposite Dongkuk Structures and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongkuk Structures position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Dongkuk Structures vs. Cloud Air CoLtd | Dongkuk Structures vs. Lotte Data Communication | Dongkuk Structures vs. Nable Communications | Dongkuk Structures vs. Korea Alcohol Industrial |
| Hyundai vs. PJ Electronics Co | Hyundai vs. Seoul Electronics Telecom | Hyundai vs. Korea Air Svc | Hyundai vs. KyungIn Electronics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |