Correlation Between Hyosung Heavy and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Hyosung Heavy and Shinsegae Information 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 Hyosung Heavy and Shinsegae Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Heavy Industries and Shinsegae Information Communication, you can compare the effects of market volatilities on Hyosung Heavy and Shinsegae Information 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 Hyosung Heavy with a short position of Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Heavy and Shinsegae Information.
Diversification Opportunities for Hyosung Heavy and Shinsegae Information
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyosung and Shinsegae is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Heavy Industries and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information and Hyosung Heavy 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 Hyosung Heavy Industries are associated (or correlated) with Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Hyosung Heavy i.e., Hyosung Heavy and Shinsegae Information go up and down completely randomly.
Pair Corralation between Hyosung Heavy and Shinsegae Information
Assuming the 90 days trading horizon Hyosung Heavy Industries is expected to under-perform the Shinsegae Information. In addition to that, Hyosung Heavy is 2.14 times more volatile than Shinsegae Information Communication. It trades about -0.15 of its total potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.09 per unit of volatility. If you would invest 904,000 in Shinsegae Information Communication on September 13, 2024 and sell it today you would lose (36,000) from holding Shinsegae Information Communication or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyosung Heavy Industries vs. Shinsegae Information Communic
Performance |
| Timeline |
| Hyosung Heavy Industries |
| Shinsegae Information |
Hyosung Heavy and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Heavy and Shinsegae Information
The main advantage of trading using opposite Hyosung Heavy and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Heavy position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| Hyosung Heavy vs. LG Energy Solution | Hyosung Heavy vs. Doosan Heavy Ind | Hyosung Heavy vs. Aprogen KIC | Hyosung Heavy vs. Korea Refract |
| Shinsegae Information vs. DB Insurance Co | Shinsegae Information vs. Hyundai Home Shopping | Shinsegae Information vs. Dongbu Insurance Co | Shinsegae Information vs. Cheryong Industrial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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