Correlation Between Hyundai Industrial and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Hyundai Industrial and Aprogen Healthcare 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 Aprogen Healthcare 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 Aprogen Healthcare Games, you can compare the effects of market volatilities on Hyundai Industrial and Aprogen Healthcare 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Industrial and Aprogen Healthcare.
Diversification Opportunities for Hyundai Industrial and Aprogen Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Aprogen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Industrial Co and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Hyundai Industrial i.e., Hyundai Industrial and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Hyundai Industrial and Aprogen Healthcare
Assuming the 90 days trading horizon Hyundai Industrial Co is expected to generate 0.33 times more return on investment than Aprogen Healthcare. However, Hyundai Industrial Co is 3.05 times less risky than Aprogen Healthcare. It trades about 0.37 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.37 per unit of risk. If you would invest 484,351 in Hyundai Industrial Co on October 16, 2024 and sell it today you would earn a total of 38,649 from holding Hyundai Industrial Co or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Industrial Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Hyundai Industrial |
| Aprogen Healthcare Games |
Hyundai Industrial and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Industrial and Aprogen Healthcare
The main advantage of trading using opposite Hyundai Industrial and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Industrial position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Hyundai Industrial vs. Hankukpackage Co | Hyundai Industrial vs. Choil Aluminum | Hyundai Industrial vs. Dongil Metal Co | Hyundai Industrial vs. Sung Bo Chemicals |
| Aprogen Healthcare vs. Songwon Industrial Co | Aprogen Healthcare vs. Korea Information Communications | Aprogen Healthcare vs. Hyundai Industrial Co | Aprogen Healthcare vs. Myoung Shin Industrial |
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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