Correlation Between Hyundai Green and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and EBEST Investment 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 EBEST Investment 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 EBEST Investment Securities, you can compare the effects of market volatilities on Hyundai Green and EBEST Investment 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 EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and EBEST Investment.
Diversification Opportunities for Hyundai Green and EBEST Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and EBEST is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Hyundai Green i.e., Hyundai Green and EBEST Investment go up and down completely randomly.
Pair Corralation between Hyundai Green and EBEST Investment
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 0.78 times more return on investment than EBEST Investment. However, Hyundai Green Food is 1.28 times less risky than EBEST Investment. It trades about 0.05 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.02 per unit of risk. If you would invest 1,139,000 in Hyundai Green Food on September 26, 2024 and sell it today you would earn a total of 367,000 from holding Hyundai Green Food or generate 32.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.5% |
| Values | Daily Returns |
Hyundai Green Food vs. EBEST Investment Securities
Performance |
| Timeline |
| Hyundai Green Food |
| EBEST Investment Sec |
Hyundai Green and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and EBEST Investment
The main advantage of trading using opposite Hyundai Green and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment'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 |
| EBEST Investment vs. Hyundai Green Food | EBEST Investment vs. CJ Seafood Corp | EBEST Investment vs. Sangsangin Investment Securities | EBEST Investment vs. Korea Investment Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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