Correlation Between Dongil Metal and Hyundai Engineering
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Hyundai Engineering 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 Dongil Metal and Hyundai Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and Hyundai Engineering Construction, you can compare the effects of market volatilities on Dongil Metal and Hyundai Engineering 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 Dongil Metal with a short position of Hyundai Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Hyundai Engineering.
Diversification Opportunities for Dongil Metal and Hyundai Engineering
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongil and Hyundai is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Hyundai Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Engineering and Dongil Metal 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 Dongil Metal Co are associated (or correlated) with Hyundai Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Engineering has no effect on the direction of Dongil Metal i.e., Dongil Metal and Hyundai Engineering go up and down completely randomly.
Pair Corralation between Dongil Metal and Hyundai Engineering
Assuming the 90 days trading horizon Dongil Metal Co is expected to under-perform the Hyundai Engineering. In addition to that, Dongil Metal is 1.37 times more volatile than Hyundai Engineering Construction. It trades about -0.07 of its total potential returns per unit of risk. Hyundai Engineering Construction is currently generating about -0.01 per unit of volatility. If you would invest 3,605,425 in Hyundai Engineering Construction on November 7, 2024 and sell it today you would lose (515,425) from holding Hyundai Engineering Construction or give up 14.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.49% |
| Values | Daily Returns |
Dongil Metal Co vs. Hyundai Engineering Constructi
Performance |
| Timeline |
| Dongil Metal |
| Hyundai Engineering |
Dongil Metal and Hyundai Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Hyundai Engineering
The main advantage of trading using opposite Dongil Metal and Hyundai Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Hyundai Engineering 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 Engineering will offset losses from the drop in Hyundai Engineering's long position.| Dongil Metal vs. BooKook Steel Co | Dongil Metal vs. Daesung Hi Tech Co | Dongil Metal vs. INSUN Environmental New | Dongil Metal vs. Hankook Furniture Co |
| Hyundai Engineering vs. SCI Information Service | Hyundai Engineering vs. LB Investment | Hyundai Engineering vs. Samsung Publishing Co | Hyundai Engineering vs. Chorokbaem Healthcare 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |