Correlation Between Microfriend and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Microfriend 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 Microfriend and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microfriend and Hyundai Home Shopping, you can compare the effects of market volatilities on Microfriend 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 Microfriend with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microfriend and Hyundai Home.
Diversification Opportunities for Microfriend and Hyundai Home
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microfriend and Hyundai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microfriend 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 Microfriend 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 Microfriend 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 Microfriend i.e., Microfriend and Hyundai Home go up and down completely randomly.
Pair Corralation between Microfriend and Hyundai Home
Assuming the 90 days trading horizon Microfriend is expected to under-perform the Hyundai Home. In addition to that, Microfriend is 2.38 times more volatile than Hyundai Home Shopping. It trades about -0.44 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about -0.16 per unit of volatility. If you would invest 4,770,000 in Hyundai Home Shopping on September 1, 2024 and sell it today you would lose (255,000) from holding Hyundai Home Shopping or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microfriend vs. Hyundai Home Shopping
Performance |
| Timeline |
| Microfriend |
| Hyundai Home Shopping |
Microfriend and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microfriend and Hyundai Home
The main advantage of trading using opposite Microfriend and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microfriend 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.| Microfriend vs. SK Hynix | Microfriend vs. LX Semicon Co | Microfriend vs. Tokai Carbon Korea | Microfriend vs. People Technology |
| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Daewoo SBI SPAC | Hyundai Home vs. Dream Security co | Hyundai Home vs. Microfriend |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |