Correlation Between GenoFocus and Hyundai Steel
Can any of the company-specific risk be diversified away by investing in both GenoFocus and Hyundai Steel 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 GenoFocus and Hyundai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenoFocus and Hyundai Steel, you can compare the effects of market volatilities on GenoFocus and Hyundai Steel 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 GenoFocus with a short position of Hyundai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenoFocus and Hyundai Steel.
Diversification Opportunities for GenoFocus and Hyundai Steel
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GenoFocus and Hyundai is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding GenoFocus and Hyundai Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Steel and GenoFocus 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 GenoFocus are associated (or correlated) with Hyundai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Steel has no effect on the direction of GenoFocus i.e., GenoFocus and Hyundai Steel go up and down completely randomly.
Pair Corralation between GenoFocus and Hyundai Steel
Assuming the 90 days trading horizon GenoFocus is expected to generate 1.84 times more return on investment than Hyundai Steel. However, GenoFocus is 1.84 times more volatile than Hyundai Steel. It trades about 0.02 of its potential returns per unit of risk. Hyundai Steel is currently generating about -0.04 per unit of risk. If you would invest 400,000 in GenoFocus on September 12, 2024 and sell it today you would earn a total of 13,000 from holding GenoFocus or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
GenoFocus vs. Hyundai Steel
Performance |
| Timeline |
| GenoFocus |
| Hyundai Steel |
GenoFocus and Hyundai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenoFocus and Hyundai Steel
The main advantage of trading using opposite GenoFocus and Hyundai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenoFocus position performs unexpectedly, Hyundai Steel 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 Steel will offset losses from the drop in Hyundai Steel's long position.| GenoFocus vs. Netmarble Games Corp | GenoFocus vs. Koh Young Technology | GenoFocus vs. Hwangkum Steel Technology | GenoFocus vs. Daou Technology |
| Hyundai Steel vs. LG Chemicals | Hyundai Steel vs. POSCO Holdings | Hyundai Steel vs. Hanwha Solutions | Hyundai Steel vs. Lotte Chemical Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |