Correlation Between Hyundai Industrial and Samsung Card
Can any of the company-specific risk be diversified away by investing in both Hyundai Industrial and Samsung Card 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 Hyundai Industrial and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Industrial Co and Samsung Card Co, you can compare the effects of market volatilities on Hyundai Industrial and Samsung Card 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 Hyundai Industrial with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Industrial and Samsung Card.
Diversification Opportunities for Hyundai Industrial and Samsung Card
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and Samsung is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Industrial Co and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and Hyundai Industrial 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 Hyundai Industrial Co are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of Hyundai Industrial i.e., Hyundai Industrial and Samsung Card go up and down completely randomly.
Pair Corralation between Hyundai Industrial and Samsung Card
Assuming the 90 days trading horizon Hyundai Industrial Co is expected to under-perform the Samsung Card. In addition to that, Hyundai Industrial is 1.05 times more volatile than Samsung Card Co. It trades about -0.07 of its total potential returns per unit of risk. Samsung Card Co is currently generating about 0.06 per unit of volatility. If you would invest 3,289,157 in Samsung Card Co on November 3, 2024 and sell it today you would earn a total of 910,843 from holding Samsung Card Co or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Hyundai Industrial Co vs. Samsung Card Co
Performance |
| Timeline |
| Hyundai Industrial |
| Samsung Card |
Hyundai Industrial and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Industrial and Samsung Card
The main advantage of trading using opposite Hyundai Industrial and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Industrial position performs unexpectedly, Samsung Card 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 Samsung Card will offset losses from the drop in Samsung Card's long position.| Hyundai Industrial vs. Solus Advanced Materials | Hyundai Industrial vs. Kolon Plastics | Hyundai Industrial vs. Next Entertainment World | Hyundai Industrial vs. Ssangyong Materials Corp |
| Samsung Card vs. GS Engineering Construction | Samsung Card vs. Korea Computer | Samsung Card vs. Nam Hwa Construction | Samsung Card vs. Daishin Information Communications |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |