Correlation Between Grand Korea and Hugel
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Hugel 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 Grand Korea and Hugel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Hugel Inc, you can compare the effects of market volatilities on Grand Korea and Hugel 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 Grand Korea with a short position of Hugel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Hugel.
Diversification Opportunities for Grand Korea and Hugel
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grand and Hugel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Hugel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugel Inc and Grand Korea 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 Grand Korea Leisure are associated (or correlated) with Hugel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugel Inc has no effect on the direction of Grand Korea i.e., Grand Korea and Hugel go up and down completely randomly.
Pair Corralation between Grand Korea and Hugel
Assuming the 90 days trading horizon Grand Korea Leisure is expected to under-perform the Hugel. But the stock apears to be less risky and, when comparing its historical volatility, Grand Korea Leisure is 1.48 times less risky than Hugel. The stock trades about -0.04 of its potential returns per unit of risk. The Hugel Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14,030,000 in Hugel Inc on September 12, 2024 and sell it today you would earn a total of 12,470,000 from holding Hugel Inc or generate 88.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Hugel Inc
Performance |
| Timeline |
| Grand Korea Leisure |
| Hugel Inc |
Grand Korea and Hugel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Hugel
The main advantage of trading using opposite Grand Korea and Hugel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Hugel 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 Hugel will offset losses from the drop in Hugel's long position.| Grand Korea vs. Handok Clean Tech | Grand Korea vs. Samsung Life Insurance | Grand Korea vs. Tae Kyung Chemical | Grand Korea vs. Asiana Airlines |
| Hugel vs. Samsung Electronics Co | Hugel vs. Samsung Electronics Co | Hugel vs. SK Hynix | Hugel vs. SK Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |