Correlation Between Hyundai Green and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Jinro Distillers 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 Jinro Distillers 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 Jinro Distillers Co, you can compare the effects of market volatilities on Hyundai Green and Jinro Distillers 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 Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Jinro Distillers.
Diversification Opportunities for Hyundai Green and Jinro Distillers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Jinro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers 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 Jinro Distillers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinro Distillers has no effect on the direction of Hyundai Green i.e., Hyundai Green and Jinro Distillers go up and down completely randomly.
Pair Corralation between Hyundai Green and Jinro Distillers
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 1.58 times more return on investment than Jinro Distillers. However, Hyundai Green is 1.58 times more volatile than Jinro Distillers Co. It trades about 0.43 of its potential returns per unit of risk. Jinro Distillers Co is currently generating about -0.15 per unit of risk. If you would invest 1,164,000 in Hyundai Green Food on August 31, 2024 and sell it today you would earn a total of 201,000 from holding Hyundai Green Food or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Green Food vs. Jinro Distillers Co
Performance |
| Timeline |
| Hyundai Green Food |
| Jinro Distillers |
Hyundai Green and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Jinro Distillers
The main advantage of trading using opposite Hyundai Green and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Jinro Distillers 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 Jinro Distillers will offset losses from the drop in Jinro Distillers' 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 |
| Jinro Distillers vs. Korea Real Estate | Jinro Distillers vs. Korea Ratings Co | Jinro Distillers vs. IQuest Co | Jinro Distillers vs. Wonbang Tech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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