Correlation Between Amogreentech and Hyosung Advanced
Can any of the company-specific risk be diversified away by investing in both Amogreentech and Hyosung Advanced 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 Amogreentech and Hyosung Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and Hyosung Advanced Materials, you can compare the effects of market volatilities on Amogreentech and Hyosung Advanced 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 Amogreentech with a short position of Hyosung Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and Hyosung Advanced.
Diversification Opportunities for Amogreentech and Hyosung Advanced
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amogreentech and Hyosung is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Hyosung Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyosung Advanced Mat and Amogreentech 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 Amogreentech Co are associated (or correlated) with Hyosung Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyosung Advanced Mat has no effect on the direction of Amogreentech i.e., Amogreentech and Hyosung Advanced go up and down completely randomly.
Pair Corralation between Amogreentech and Hyosung Advanced
Assuming the 90 days trading horizon Amogreentech Co is expected to generate 1.2 times more return on investment than Hyosung Advanced. However, Amogreentech is 1.2 times more volatile than Hyosung Advanced Materials. It trades about 0.2 of its potential returns per unit of risk. Hyosung Advanced Materials is currently generating about 0.05 per unit of risk. If you would invest 522,000 in Amogreentech Co on January 28, 2025 and sell it today you would earn a total of 71,000 from holding Amogreentech Co or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. Hyosung Advanced Materials
Performance |
| Timeline |
| Amogreentech |
| Hyosung Advanced Mat |
Amogreentech and Hyosung Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and Hyosung Advanced
The main advantage of trading using opposite Amogreentech and Hyosung Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, Hyosung Advanced 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 Hyosung Advanced will offset losses from the drop in Hyosung Advanced's long position.| Amogreentech vs. Ecopro BM Co | Amogreentech vs. Shin Heung Energy | Amogreentech vs. Sangsin Energy Display | Amogreentech vs. Amogreentech CoLtd |
| Hyosung Advanced vs. Husteel | Hyosung Advanced vs. Tway Air Co | Hyosung Advanced vs. Seah Steel Corp | Hyosung Advanced vs. Hanil Iron Steel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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