Correlation Between Hyosung Heavy and CU Medical
Can any of the company-specific risk be diversified away by investing in both Hyosung Heavy and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Hyosung Heavy and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Heavy and CU Medical.
Diversification Opportunities for Hyosung Heavy and CU Medical
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyosung and 115480 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Heavy Industries and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Hyosung Heavy i.e., Hyosung Heavy and CU Medical go up and down completely randomly.
Pair Corralation between Hyosung Heavy and CU Medical
Assuming the 90 days trading horizon Hyosung Heavy Industries is expected to generate 2.39 times more return on investment than CU Medical. However, Hyosung Heavy is 2.39 times more volatile than CU Medical Systems. It trades about 0.05 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.05 per unit of risk. If you would invest 37,100,000 in Hyosung Heavy Industries on September 5, 2024 and sell it today you would earn a total of 5,350,000 from holding Hyosung Heavy Industries or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Heavy Industries vs. CU Medical Systems
Performance |
| Timeline |
| Hyosung Heavy Industries |
| CU Medical Systems |
Hyosung Heavy and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Heavy and CU Medical
The main advantage of trading using opposite Hyosung Heavy and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Heavy position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| Hyosung Heavy vs. Shinsegae Information Communication | Hyosung Heavy vs. Miwon Chemicals Co | Hyosung Heavy vs. Daesung Hi Tech Co | Hyosung Heavy vs. Kukdong Oil Chemicals |
| CU Medical vs. AptaBio Therapeutics | CU Medical vs. KT Hitel | CU Medical vs. SillaJen | CU Medical vs. Cytogen |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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