Correlation Between Jin Air and Hyundai Green
Can any of the company-specific risk be diversified away by investing in both Jin Air and Hyundai Green 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 Jin Air and Hyundai Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jin Air Co and Hyundai Green Food, you can compare the effects of market volatilities on Jin Air and Hyundai Green 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 Jin Air with a short position of Hyundai Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Hyundai Green.
Diversification Opportunities for Jin Air and Hyundai Green
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jin and Hyundai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Hyundai Green Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Green Food and Jin Air 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 Jin Air Co are associated (or correlated) with Hyundai Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Green Food has no effect on the direction of Jin Air i.e., Jin Air and Hyundai Green go up and down completely randomly.
Pair Corralation between Jin Air and Hyundai Green
Assuming the 90 days trading horizon Jin Air Co is expected to generate 0.59 times more return on investment than Hyundai Green. However, Jin Air Co is 1.69 times less risky than Hyundai Green. It trades about -0.01 of its potential returns per unit of risk. Hyundai Green Food is currently generating about -0.22 per unit of risk. If you would invest 1,016,000 in Jin Air Co on October 20, 2024 and sell it today you would lose (5,000) from holding Jin Air Co or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jin Air Co vs. Hyundai Green Food
Performance |
| Timeline |
| Jin Air |
| Hyundai Green Food |
Jin Air and Hyundai Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Hyundai Green
The main advantage of trading using opposite Jin Air and Hyundai Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, Hyundai Green 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 Green will offset losses from the drop in Hyundai Green's long position.| Jin Air vs. SCI Information Service | Jin Air vs. DB Financial Investment | Jin Air vs. NICE Information Service | Jin Air vs. EBEST Investment Securities |
| Hyundai Green vs. Solus Advanced Materials | Hyundai Green vs. DoubleU Games Co | Hyundai Green vs. Mgame Corp | Hyundai Green vs. TOPMATERIAL LTD |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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