Correlation Between Hyundai Green and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Shinhan Inverse 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 Shinhan Inverse 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 Shinhan Inverse Silver, you can compare the effects of market volatilities on Hyundai Green and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Shinhan Inverse.
Diversification Opportunities for Hyundai Green and Shinhan Inverse
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Shinhan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Shinhan Inverse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Silver 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse Silver has no effect on the direction of Hyundai Green i.e., Hyundai Green and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Hyundai Green and Shinhan Inverse
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 0.82 times more return on investment than Shinhan Inverse. However, Hyundai Green Food is 1.22 times less risky than Shinhan Inverse. It trades about 0.04 of its potential returns per unit of risk. Shinhan Inverse Silver is currently generating about -0.03 per unit of risk. If you would invest 1,139,000 in Hyundai Green Food on November 7, 2024 and sell it today you would earn a total of 249,000 from holding Hyundai Green Food or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.04% |
| Values | Daily Returns |
Hyundai Green Food vs. Shinhan Inverse Silver
Performance |
| Timeline |
| Hyundai Green Food |
| Shinhan Inverse Silver |
Hyundai Green and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Shinhan Inverse
The main advantage of trading using opposite Hyundai Green and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.| Hyundai Green vs. Digital Imaging Technology | Hyundai Green vs. Dong A Steel Technology | Hyundai Green vs. Bosung Power Technology | Hyundai Green vs. Woori Technology |
| Shinhan Inverse vs. Inzi Display CoLtd | Shinhan Inverse vs. Barunson Entertainment Arts | Shinhan Inverse vs. Nice Information Telecommunication | Shinhan Inverse vs. SM Entertainment 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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