Correlation Between Hyundai Green and Korea Information
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Korea Information 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 Korea Information 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 Korea Information Communications, you can compare the effects of market volatilities on Hyundai Green and Korea Information 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 Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Korea Information.
Diversification Opportunities for Hyundai Green and Korea Information
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and Korea is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Korea Information Communicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information 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 Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Hyundai Green i.e., Hyundai Green and Korea Information go up and down completely randomly.
Pair Corralation between Hyundai Green and Korea Information
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 1.94 times more return on investment than Korea Information. However, Hyundai Green is 1.94 times more volatile than Korea Information Communications. It trades about 0.43 of its potential returns per unit of risk. Korea Information Communications is currently generating about 0.01 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Green Food vs. Korea Information Communicatio
Performance |
| Timeline |
| Hyundai Green Food |
| Korea Information |
Hyundai Green and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Korea Information
The main advantage of trading using opposite Hyundai Green and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's 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 |
| Korea Information vs. Dongsin Engineering Construction | Korea Information vs. Doosan Fuel Cell | Korea Information vs. Daishin Balance 1 | Korea Information vs. Total Soft Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |