Correlation Between SKONEC Entertainment and Hyundai CF

Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and Hyundai CF 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 SKONEC Entertainment and Hyundai CF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SKONEC Entertainment Co and Hyundai CF, you can compare the effects of market volatilities on SKONEC Entertainment and Hyundai CF 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 SKONEC Entertainment with a short position of Hyundai CF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and Hyundai CF.

Diversification Opportunities for SKONEC Entertainment and Hyundai CF

0.0

Correlation Coefficient

SKONEC Entertainment  Hyundai CF

Pay attention - limited upside

The 3 months correlation between SKONEC and Hyundai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and Hyundai CF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai CF and SKONEC Entertainment 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 SKONEC Entertainment Co are associated (or correlated) with Hyundai CF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai CF has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and Hyundai CF go up and down completely randomly.

Pair Corralation between SKONEC Entertainment and Hyundai CF

If you would invest  300,500  in SKONEC Entertainment Co on October 25, 2024 and sell it today you would earn a total of  125,000  from holding SKONEC Entertainment Co or generate 41.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

SKONEC Entertainment Co  vs.  Hyundai CF

SKONEC Entertainment

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SKONEC Entertainment Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SKONEC Entertainment sustained solid returns over the last few months and may actually be approaching a breakup point.

Hyundai CF

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Hyundai CF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hyundai CF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SKONEC Entertainment and Hyundai CF

The main advantage of trading using opposite SKONEC Entertainment and Hyundai CF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, Hyundai CF 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 CF will offset losses from the drop in Hyundai CF's long position.

The idea behind SKONEC Entertainment Co and Hyundai CF pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.