Correlation Between Seojin Automotive and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both Seojin Automotive and Hyundai Green 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 Seojin Automotive and Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seojin Automotive CoLtd and Hyundai Green Food, you can compare the effects of market volatilities on Seojin Automotive and Hyundai Green 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 Seojin Automotive with a short position of Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seojin Automotive and Hyundai Green.
Diversification Opportunities for Seojin Automotive and Hyundai Green
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seojin and Hyundai is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Seojin Automotive CoLtd and Hyundai Green Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Green Food and Seojin Automotive 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 Seojin Automotive CoLtd are associated (or correlated) with Hyundai Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Green Food has no effect on the direction of Seojin Automotive i.e., Seojin Automotive and Hyundai Green go up and down completely randomly.
Pair Corralation between Seojin Automotive and Hyundai Green
Assuming the 90 days trading horizon Seojin Automotive CoLtd is expected to under-perform the Hyundai Green. In addition to that, Seojin Automotive is 1.58 times more volatile than Hyundai Green Food. It trades about -0.1 of its total potential returns per unit of risk. Hyundai Green Food is currently generating about 0.4 per unit of volatility. If you would invest 1,291,000 in Hyundai Green Food on September 15, 2024 and sell it today you would earn a total of 189,000 from holding Hyundai Green Food or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seojin Automotive CoLtd vs. Hyundai Green Food
Performance |
| Timeline |
| Seojin Automotive CoLtd |
| Hyundai Green Food |
Seojin Automotive and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seojin Automotive and Hyundai Green
The main advantage of trading using opposite Seojin Automotive and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seojin Automotive position performs unexpectedly, Hyundai Green 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 Green will offset losses from the drop in Hyundai Green's long position.| Seojin Automotive vs. Hyundai Green Food | Seojin Automotive vs. Shinsegae Food | Seojin Automotive vs. FOODWELL Co | Seojin Automotive vs. Hankukpackage Co |
| Hyundai Green vs. Korea Alcohol Industrial | Hyundai Green vs. TS Investment Corp | Hyundai Green vs. LG Household Healthcare | Hyundai Green vs. Jin Air 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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