Correlation Between GungHo Online and Hyundai
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Hyundai 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 GungHo Online and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and Hyundai Motor, you can compare the effects of market volatilities on GungHo Online and Hyundai 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 GungHo Online with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Hyundai.
Diversification Opportunities for GungHo Online and Hyundai
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Hyundai is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and GungHo Online 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 GungHo Online Entertainment are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of GungHo Online i.e., GungHo Online and Hyundai go up and down completely randomly.
Pair Corralation between GungHo Online and Hyundai
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.54 times more return on investment than Hyundai. However, GungHo Online is 1.54 times more volatile than Hyundai Motor. It trades about 0.14 of its potential returns per unit of risk. Hyundai Motor is currently generating about -0.05 per unit of risk. If you would invest 1,910 in GungHo Online Entertainment on October 9, 2024 and sell it today you would earn a total of 90.00 from holding GungHo Online Entertainment or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Hyundai Motor
Performance |
| Timeline |
| GungHo Online Entert |
| Hyundai Motor |
GungHo Online and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Hyundai
The main advantage of trading using opposite GungHo Online and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| GungHo Online vs. Spirent Communications plc | GungHo Online vs. Commercial Vehicle Group | GungHo Online vs. Highlight Communications AG | GungHo Online vs. Entravision Communications |
| Hyundai vs. INFORMATION SVC GRP | Hyundai vs. Linedata Services SA | Hyundai vs. ECHO INVESTMENT ZY | Hyundai vs. Pure Storage |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |