Correlation Between Hyundai Heavy and Hanil Vacuum
Can any of the company-specific risk be diversified away by investing in both Hyundai Heavy and Hanil Vacuum 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 Heavy and Hanil Vacuum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Heavy Industries and Hanil Vacuum Co, you can compare the effects of market volatilities on Hyundai Heavy and Hanil Vacuum 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 Heavy with a short position of Hanil Vacuum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Heavy and Hanil Vacuum.
Diversification Opportunities for Hyundai Heavy and Hanil Vacuum
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyundai and Hanil is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Heavy Industries and Hanil Vacuum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Vacuum and Hyundai Heavy 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 Heavy Industries are associated (or correlated) with Hanil Vacuum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Vacuum has no effect on the direction of Hyundai Heavy i.e., Hyundai Heavy and Hanil Vacuum go up and down completely randomly.
Pair Corralation between Hyundai Heavy and Hanil Vacuum
Assuming the 90 days trading horizon Hyundai Heavy Industries is expected to generate 0.4 times more return on investment than Hanil Vacuum. However, Hyundai Heavy Industries is 2.51 times less risky than Hanil Vacuum. It trades about 0.05 of its potential returns per unit of risk. Hanil Vacuum Co is currently generating about -0.03 per unit of risk. If you would invest 5,484,199 in Hyundai Heavy Industries on October 9, 2024 and sell it today you would earn a total of 2,705,801 from holding Hyundai Heavy Industries or generate 49.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.71% |
Values | Daily Returns |
Hyundai Heavy Industries vs. Hanil Vacuum Co
Performance |
Timeline |
Hyundai Heavy Industries |
Hanil Vacuum |
Hyundai Heavy and Hanil Vacuum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai Heavy and Hanil Vacuum
The main advantage of trading using opposite Hyundai Heavy and Hanil Vacuum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Heavy position performs unexpectedly, Hanil Vacuum 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 Hanil Vacuum will offset losses from the drop in Hanil Vacuum's long position.Hyundai Heavy vs. Miwon Chemical | Hyundai Heavy vs. TK Chemical | Hyundai Heavy vs. Daejung Chemicals Metals | Hyundai Heavy vs. Youl Chon Chemical |
Hanil Vacuum vs. Iljin Display | Hanil Vacuum vs. Hanwha Life Insurance | Hanil Vacuum vs. Lotte Non Life Insurance | Hanil Vacuum vs. LG Display 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |