Correlation Between TSOGO SUN and Hyundai
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Hyundai Motor, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Hyundai.
Diversification Opportunities for TSOGO SUN and Hyundai
Average diversification
The 3 months correlation between TSOGO and Hyundai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Hyundai go up and down completely randomly.
Pair Corralation between TSOGO SUN and Hyundai
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 2.85 times more return on investment than Hyundai. However, TSOGO SUN is 2.85 times more volatile than Hyundai Motor. It trades about 0.06 of its potential returns per unit of risk. Hyundai Motor is currently generating about 0.08 per unit of risk. If you would invest 17.00 in TSOGO SUN GAMING on September 3, 2024 and sell it today you would earn a total of 37.00 from holding TSOGO SUN GAMING or generate 217.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Hyundai Motor
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Hyundai Motor |
TSOGO SUN and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Hyundai
The main advantage of trading using opposite TSOGO SUN and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. ENTAIN PLC UNSPADR1 | TSOGO SUN vs. GENTING SG LTD | TSOGO SUN vs. Boyd Gaming |
| Hyundai vs. COMBA TELECOM SYST | Hyundai vs. Citic Telecom International | Hyundai vs. NetSol Technologies | Hyundai vs. Verizon Communications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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