Correlation Between Hyundai Heavy and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Hyundai Heavy and Hyundai Home 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 Hyundai Heavy and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Heavy Industries and Hyundai Home Shopping, you can compare the effects of market volatilities on Hyundai Heavy and Hyundai Home 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 Hyundai Heavy with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Heavy and Hyundai Home.
Diversification Opportunities for Hyundai Heavy and Hyundai Home
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Hyundai is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Heavy Industries and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping and Hyundai 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 Hyundai Heavy Industries are associated (or correlated) with Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Hyundai Heavy i.e., Hyundai Heavy and Hyundai Home go up and down completely randomly.
Pair Corralation between Hyundai Heavy and Hyundai Home
Assuming the 90 days trading horizon Hyundai Heavy Industries is expected to generate 3.25 times more return on investment than Hyundai Home. However, Hyundai Heavy is 3.25 times more volatile than Hyundai Home Shopping. It trades about 0.12 of its potential returns per unit of risk. Hyundai Home Shopping is currently generating about -0.05 per unit of risk. If you would invest 18,550,000 in Hyundai Heavy Industries on September 3, 2024 and sell it today you would earn a total of 3,450,000 from holding Hyundai Heavy Industries or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Heavy Industries vs. Hyundai Home Shopping
Performance |
| Timeline |
| Hyundai Heavy Industries |
| Hyundai Home Shopping |
Hyundai Heavy and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Heavy and Hyundai Home
The main advantage of trading using opposite Hyundai Heavy and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Heavy position performs unexpectedly, Hyundai Home 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 Home will offset losses from the drop in Hyundai Home's long position.| Hyundai Heavy vs. Hyundai Home Shopping | Hyundai Heavy vs. Sam Yang Foods | Hyundai Heavy vs. Samick Musical Instruments | Hyundai Heavy vs. CKH Food Health |
| Hyundai Home vs. Nice Information Telecommunication | Hyundai Home vs. Hanmi Semiconductor Co | Hyundai Home vs. Youngsin Metal Industrial | Hyundai Home vs. Daedong Metals Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |