Correlation Between TS Investment and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both TS Investment 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 TS Investment and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TS Investment Corp and Hyundai Home Shopping, you can compare the effects of market volatilities on TS Investment 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 TS Investment with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and Hyundai Home.
Diversification Opportunities for TS Investment and Hyundai Home
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 246690 and Hyundai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp 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 TS Investment 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 TS Investment Corp 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 TS Investment i.e., TS Investment and Hyundai Home go up and down completely randomly.
Pair Corralation between TS Investment and Hyundai Home
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the Hyundai Home. In addition to that, TS Investment is 1.27 times more volatile than Hyundai Home Shopping. It trades about -0.05 of its total potential returns per unit of risk. Hyundai Home Shopping is currently generating about 0.04 per unit of volatility. If you would invest 4,135,525 in Hyundai Home Shopping on September 28, 2024 and sell it today you would earn a total of 614,475 from holding Hyundai Home Shopping or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. Hyundai Home Shopping
Performance |
| Timeline |
| TS Investment Corp |
| Hyundai Home Shopping |
TS Investment and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and Hyundai Home
The main advantage of trading using opposite TS Investment and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment 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.| TS Investment vs. Samsung Electronics Co | TS Investment vs. Samsung Electronics Co | TS Investment vs. LG Energy Solution | TS Investment vs. SK Hynix |
| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Wonbang Tech Co | Hyundai Home vs. Busan Industrial Co | Hyundai Home vs. Busan Ind |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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