Correlation Between Hyundai Green and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Hyundai Green and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Koryo Credit.
Diversification Opportunities for Hyundai Green and Koryo Credit
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Koryo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Hyundai Green i.e., Hyundai Green and Koryo Credit go up and down completely randomly.
Pair Corralation between Hyundai Green and Koryo Credit
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 1.49 times more return on investment than Koryo Credit. However, Hyundai Green is 1.49 times more volatile than Koryo Credit Information. It trades about 0.15 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.03 per unit of risk. If you would invest 1,226,000 in Hyundai Green Food on September 25, 2024 and sell it today you would earn a total of 332,000 from holding Hyundai Green Food or generate 27.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hyundai Green Food vs. Koryo Credit Information
Performance |
Timeline |
Hyundai Green Food |
Koryo Credit Information |
Hyundai Green and Koryo Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai Green and Koryo Credit
The main advantage of trading using opposite Hyundai Green and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit'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 |
Koryo Credit vs. DSC Investment | Koryo Credit vs. Mobileleader CoLtd | Koryo Credit vs. Korea Information Communications | Koryo Credit vs. EBEST Investment Securities |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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