Correlation Between Dongil Metal and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Dongil Metal and Hyundai Home 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 Home 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 Home Shopping, you can compare the effects of market volatilities on Dongil Metal and Hyundai Home 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 Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Hyundai Home.
Diversification Opportunities for Dongil Metal and Hyundai Home
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and Hyundai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal Co and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping 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 Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Dongil Metal i.e., Dongil Metal and Hyundai Home go up and down completely randomly.
Pair Corralation between Dongil Metal and Hyundai Home
Assuming the 90 days trading horizon Dongil Metal Co is expected to under-perform the Hyundai Home. In addition to that, Dongil Metal is 1.48 times more volatile than Hyundai Home Shopping. It trades about -0.07 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.0 per unit of volatility. If you would invest 5,149,365 in Hyundai Home Shopping on October 30, 2024 and sell it today you would lose (469,365) from holding Hyundai Home Shopping or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.51% |
| Values | Daily Returns |
Dongil Metal Co vs. Hyundai Home Shopping
Performance |
| Timeline |
| Dongil Metal |
| Hyundai Home Shopping |
Dongil Metal and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Hyundai Home
The main advantage of trading using opposite Dongil Metal and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal position performs unexpectedly, Hyundai Home 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 Home will offset losses from the drop in Hyundai Home's long position.| Dongil Metal vs. Jinro Distillers Co | Dongil Metal vs. Heungkuk Metaltech CoLtd | Dongil Metal vs. Kbi Metal Co | Dongil Metal vs. Innowireless Co |
| Hyundai Home vs. Daewoo Electronic Components | Hyundai Home vs. Jahwa Electronics Co | Hyundai Home vs. PJ Electronics Co | Hyundai Home vs. Dongbang Transport Logistics |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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