Correlation Between Hyundai Green and Seojin Automotive
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Seojin Automotive 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 Seojin Automotive 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 Seojin Automotive CoLtd, you can compare the effects of market volatilities on Hyundai Green and Seojin Automotive 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 Seojin Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Seojin Automotive.
Diversification Opportunities for Hyundai Green and Seojin Automotive
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Seojin is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Seojin Automotive CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seojin Automotive CoLtd 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 Seojin Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seojin Automotive CoLtd has no effect on the direction of Hyundai Green i.e., Hyundai Green and Seojin Automotive go up and down completely randomly.
Pair Corralation between Hyundai Green and Seojin Automotive
Assuming the 90 days trading horizon Hyundai Green Food is expected to under-perform the Seojin Automotive. In addition to that, Hyundai Green is 1.59 times more volatile than Seojin Automotive CoLtd. It trades about -0.22 of its total potential returns per unit of risk. Seojin Automotive CoLtd is currently generating about 0.2 per unit of volatility. If you would invest 191,000 in Seojin Automotive CoLtd on October 20, 2024 and sell it today you would earn a total of 9,000 from holding Seojin Automotive CoLtd or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hyundai Green Food vs. Seojin Automotive CoLtd
Performance |
| Timeline |
| Hyundai Green Food |
| Seojin Automotive CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hyundai Green and Seojin Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Seojin Automotive
The main advantage of trading using opposite Hyundai Green and Seojin Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Seojin Automotive 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 Seojin Automotive will offset losses from the drop in Seojin Automotive's long position.| Hyundai Green vs. Solus Advanced Materials | Hyundai Green vs. DoubleU Games Co | Hyundai Green vs. Mgame Corp | Hyundai Green vs. TOPMATERIAL LTD |
| Seojin Automotive vs. Barunson Entertainment Arts | Seojin Automotive vs. Seers Technology | Seojin Automotive vs. Ilji Technology Co | Seojin Automotive vs. Cube Entertainment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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