Correlation Between Hyundai and 311960
Can any of the company-specific risk be diversified away by investing in both Hyundai and 311960 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 and 311960 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor Co and 311960, you can compare the effects of market volatilities on Hyundai and 311960 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 with a short position of 311960. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and 311960.
Diversification Opportunities for Hyundai and 311960
Pay attention - limited upside
The 3 months correlation between Hyundai and 311960 is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and 311960 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 311960 and Hyundai 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 Motor Co are associated (or correlated) with 311960. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 311960 has no effect on the direction of Hyundai i.e., Hyundai and 311960 go up and down completely randomly.
Pair Corralation between Hyundai and 311960
Assuming the 90 days trading horizon Hyundai Motor Co is expected to under-perform the 311960. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Motor Co is 3.68 times less risky than 311960. The stock trades about -0.14 of its potential returns per unit of risk. The 311960 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 320,000 in 311960 on September 23, 2024 and sell it today you would earn a total of 116,000 from holding 311960 or generate 36.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 97.73% |
Values | Daily Returns |
Hyundai Motor Co vs. 311960
Performance |
Timeline |
Hyundai Motor |
311960 |
Hyundai and 311960 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai and 311960
The main advantage of trading using opposite Hyundai and 311960 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, 311960 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 311960 will offset losses from the drop in 311960's long position.Hyundai vs. Hyundai Motor Co | Hyundai vs. AnterogenCoLtd | Hyundai vs. MEDIPOST Co | Hyundai vs. Gyeongnam Steel Co |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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