Correlation Between Hyundai Green and TS Investment
Can any of the company-specific risk be diversified away by investing in both Hyundai Green and TS Investment 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 TS Investment 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 TS Investment Corp, you can compare the effects of market volatilities on Hyundai Green and TS Investment 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 TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and TS Investment.
Diversification Opportunities for Hyundai Green and TS Investment
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and 246690 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp 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 TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Hyundai Green i.e., Hyundai Green and TS Investment go up and down completely randomly.
Pair Corralation between Hyundai Green and TS Investment
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 0.41 times more return on investment than TS Investment. However, Hyundai Green Food is 2.46 times less risky than TS Investment. It trades about 0.26 of its potential returns per unit of risk. TS Investment Corp is currently generating about 0.09 per unit of risk. If you would invest 1,321,000 in Hyundai Green Food on September 25, 2024 and sell it today you would earn a total of 185,000 from holding Hyundai Green Food or generate 14.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hyundai Green Food vs. TS Investment Corp
Performance |
Timeline |
Hyundai Green Food |
TS Investment Corp |
Hyundai Green and TS Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai Green and TS Investment
The main advantage of trading using opposite Hyundai Green and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green position performs unexpectedly, TS Investment 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 TS Investment will offset losses from the drop in TS Investment'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 |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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