Correlation Between Innometry and Hyosung Heavy
Can any of the company-specific risk be diversified away by investing in both Innometry and Hyosung Heavy 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 Innometry and Hyosung Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Hyosung Heavy Industries, you can compare the effects of market volatilities on Innometry and Hyosung Heavy 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 Innometry with a short position of Hyosung Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Hyosung Heavy.
Diversification Opportunities for Innometry and Hyosung Heavy
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Innometry and Hyosung is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and Hyosung Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyosung Heavy Industries and Innometry 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 Innometry Co are associated (or correlated) with Hyosung Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyosung Heavy Industries has no effect on the direction of Innometry i.e., Innometry and Hyosung Heavy go up and down completely randomly.
Pair Corralation between Innometry and Hyosung Heavy
Assuming the 90 days trading horizon Innometry Co is expected to under-perform the Hyosung Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Innometry Co is 1.6 times less risky than Hyosung Heavy. The stock trades about -0.21 of its potential returns per unit of risk. The Hyosung Heavy Industries is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 39,550,000 in Hyosung Heavy Industries on August 29, 2024 and sell it today you would earn a total of 350,000 from holding Hyosung Heavy Industries or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Hyosung Heavy Industries
Performance |
| Timeline |
| Innometry |
| Hyosung Heavy Industries |
Innometry and Hyosung Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Hyosung Heavy
The main advantage of trading using opposite Innometry and Hyosung Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, Hyosung Heavy 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 Hyosung Heavy will offset losses from the drop in Hyosung Heavy's long position.| Innometry vs. Daejoo Electronic Materials | Innometry vs. Parksystems Corp | Innometry vs. BH Co | Innometry vs. Partron Co |
| Hyosung Heavy vs. Samyoung Electronics Co | Hyosung Heavy vs. Korean Air Lines | Hyosung Heavy vs. DAEDUCK ELECTRONICS CoLtd | Hyosung Heavy vs. LG Household Healthcare |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |