Correlation Between Lotte Reit and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Lotte Reit 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 Lotte Reit and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Reit Co and Hyundai Home Shopping, you can compare the effects of market volatilities on Lotte Reit 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 Lotte Reit with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Reit and Hyundai Home.
Diversification Opportunities for Lotte Reit and Hyundai Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotte and Hyundai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Reit Co 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 Lotte Reit 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 Lotte Reit Co 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 Lotte Reit i.e., Lotte Reit and Hyundai Home go up and down completely randomly.
Pair Corralation between Lotte Reit and Hyundai Home
If you would invest 0.00 in Lotte Reit Co on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Lotte Reit Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Lotte Reit Co vs. Hyundai Home Shopping
Performance |
| Timeline |
| Lotte Reit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hyundai Home Shopping |
Lotte Reit and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Reit and Hyundai Home
The main advantage of trading using opposite Lotte Reit and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Reit 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.| Lotte Reit vs. PH Tech Co | Lotte Reit vs. Konan Technology | Lotte Reit vs. Green Cross Medical | Lotte Reit vs. Narae Nanotech Corp |
| Hyundai Home vs. Daishin Information Communications | Hyundai Home vs. Lotte Data Communication | Hyundai Home vs. National Plastic Co | Hyundai Home vs. Iljin Materials 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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