Correlation Between Hyundai Green and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Samyoung Electronics 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 Samyoung Electronics 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Hyundai Green and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Samyoung Electronics.
Diversification Opportunities for Hyundai Green and Samyoung Electronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Samyoung is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Hyundai Green i.e., Hyundai Green and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Hyundai Green and Samyoung Electronics
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 1.07 times more return on investment than Samyoung Electronics. However, Hyundai Green is 1.07 times more volatile than Samyoung Electronics Co. It trades about 0.41 of its potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.18 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Green Food vs. Samyoung Electronics Co
Performance |
| Timeline |
| Hyundai Green Food |
| Samyoung Electronics |
Hyundai Green and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Samyoung Electronics
The main advantage of trading using opposite Hyundai Green and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' 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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