Correlation Between Youngsin Metal and Hyundai
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal 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 Youngsin Metal and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngsin Metal Industrial and Hyundai Motor Co, you can compare the effects of market volatilities on Youngsin Metal 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 Youngsin Metal with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Hyundai.
Diversification Opportunities for Youngsin Metal and Hyundai
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youngsin and Hyundai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Youngsin Metal 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 Youngsin Metal Industrial 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 Youngsin Metal i.e., Youngsin Metal and Hyundai go up and down completely randomly.
Pair Corralation between Youngsin Metal and Hyundai
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Hyundai. In addition to that, Youngsin Metal is 1.32 times more volatile than Hyundai Motor Co. It trades about 0.0 of its total potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.1 per unit of volatility. If you would invest 7,076,785 in Hyundai Motor Co on October 5, 2024 and sell it today you would earn a total of 8,343,215 from holding Hyundai Motor Co or generate 117.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Youngsin Metal Industrial vs. Hyundai Motor Co
Performance |
Timeline |
Youngsin Metal Industrial |
Hyundai Motor |
Youngsin Metal and Hyundai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Youngsin Metal and Hyundai
The main advantage of trading using opposite Youngsin Metal and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal 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.Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Seers Technology | Youngsin Metal vs. Global Standard Technology | Youngsin Metal vs. Aprogen Healthcare Games |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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