Correlation Between Maeil Dairies and HYUNDAI FEED
Can any of the company-specific risk be diversified away by investing in both Maeil Dairies and HYUNDAI FEED 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 Maeil Dairies and HYUNDAI FEED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maeil Dairies Co and HYUNDAI FEED, you can compare the effects of market volatilities on Maeil Dairies and HYUNDAI FEED 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 Maeil Dairies with a short position of HYUNDAI FEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maeil Dairies and HYUNDAI FEED.
Diversification Opportunities for Maeil Dairies and HYUNDAI FEED
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maeil and HYUNDAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maeil Dairies Co and HYUNDAI FEED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYUNDAI FEED and Maeil Dairies 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 Maeil Dairies Co are associated (or correlated) with HYUNDAI FEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYUNDAI FEED has no effect on the direction of Maeil Dairies i.e., Maeil Dairies and HYUNDAI FEED go up and down completely randomly.
Pair Corralation between Maeil Dairies and HYUNDAI FEED
Assuming the 90 days trading horizon Maeil Dairies Co is expected to generate 0.3 times more return on investment than HYUNDAI FEED. However, Maeil Dairies Co is 3.34 times less risky than HYUNDAI FEED. It trades about -0.03 of its potential returns per unit of risk. HYUNDAI FEED is currently generating about -0.18 per unit of risk. If you would invest 4,155,000 in Maeil Dairies Co on August 25, 2024 and sell it today you would lose (340,000) from holding Maeil Dairies Co or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.09% |
| Values | Daily Returns |
Maeil Dairies Co vs. HYUNDAI FEED
Performance |
| Timeline |
| Maeil Dairies |
| HYUNDAI FEED |
Maeil Dairies and HYUNDAI FEED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maeil Dairies and HYUNDAI FEED
The main advantage of trading using opposite Maeil Dairies and HYUNDAI FEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maeil Dairies position performs unexpectedly, HYUNDAI FEED 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 FEED will offset losses from the drop in HYUNDAI FEED's long position.| Maeil Dairies vs. HYUNDAI FEED | Maeil Dairies vs. Dongwoo Farm To | Maeil Dairies vs. Wooyang Co | Maeil Dairies vs. Asia Seed CoLtd |
| HYUNDAI FEED vs. Maeil Dairies Co | HYUNDAI FEED vs. Dongwoo Farm To | HYUNDAI FEED vs. Wooyang Co | HYUNDAI FEED vs. Asia Seed CoLtd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |