Correlation Between Hyundai Industrial and UNISEM
Can any of the company-specific risk be diversified away by investing in both Hyundai Industrial and UNISEM 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 UNISEM 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 UNISEM Co, you can compare the effects of market volatilities on Hyundai Industrial and UNISEM 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 UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Industrial and UNISEM.
Diversification Opportunities for Hyundai Industrial and UNISEM
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hyundai and UNISEM is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Industrial Co and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM 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 UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Hyundai Industrial i.e., Hyundai Industrial and UNISEM go up and down completely randomly.
Pair Corralation between Hyundai Industrial and UNISEM
Assuming the 90 days trading horizon Hyundai Industrial is expected to generate 1.22 times less return on investment than UNISEM. But when comparing it to its historical volatility, Hyundai Industrial Co is 2.4 times less risky than UNISEM. It trades about 0.48 of its potential returns per unit of risk. UNISEM Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 585,863 in UNISEM Co on October 14, 2024 and sell it today you would earn a total of 60,137 from holding UNISEM Co or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Industrial Co vs. UNISEM Co
Performance |
| Timeline |
| Hyundai Industrial |
| UNISEM |
Hyundai Industrial and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Industrial and UNISEM
The main advantage of trading using opposite Hyundai Industrial and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Industrial position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Hyundai Industrial vs. Cube Entertainment | Hyundai Industrial vs. SM Entertainment Co | Hyundai Industrial vs. DONGKUK TED METAL | Hyundai Industrial vs. Heungkuk Metaltech CoLtd |
| UNISEM vs. Pureun Mutual Savings | UNISEM vs. Hyundai Industrial Co | UNISEM vs. LEENO Industrial | UNISEM vs. Daejung Chemicals Metals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |