Correlation Between Hyundai Green and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Samyang Foods 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 Green and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Green Food and Samyang Foods Co, you can compare the effects of market volatilities on Hyundai Green and Samyang Foods 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 Green with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Samyang Foods.
Diversification Opportunities for Hyundai Green and Samyang Foods
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyundai and Samyang is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and Hyundai Green 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 Green Food are associated (or correlated) with Samyang Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyang Foods has no effect on the direction of Hyundai Green i.e., Hyundai Green and Samyang Foods go up and down completely randomly.
Pair Corralation between Hyundai Green and Samyang Foods
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 0.41 times more return on investment than Samyang Foods. However, Hyundai Green Food is 2.46 times less risky than Samyang Foods. It trades about 0.41 of its potential returns per unit of risk. Samyang Foods Co is currently generating about 0.0 per unit of risk. If you would invest 1,157,000 in Hyundai Green Food on August 25, 2024 and sell it today you would earn a total of 156,000 from holding Hyundai Green Food or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Green Food vs. Samyang Foods Co
Performance |
| Timeline |
| Hyundai Green Food |
| Samyang Foods |
Hyundai Green and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Samyang Foods
The main advantage of trading using opposite Hyundai Green and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Samyang Foods 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 Samyang Foods will offset losses from the drop in Samyang Foods' long position.| Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. LG Energy Solution | Hyundai Green vs. SK Hynix |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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