Correlation Between Hyundai and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Hyundai and Oakley Capital 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 Oakley Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Oakley Capital Investments, you can compare the effects of market volatilities on Hyundai and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Oakley Capital.
Diversification Opportunities for Hyundai and Oakley Capital
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyundai and Oakley is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 are associated (or correlated) with Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Hyundai i.e., Hyundai and Oakley Capital go up and down completely randomly.
Pair Corralation between Hyundai and Oakley Capital
Assuming the 90 days trading horizon Hyundai Motor is expected to under-perform the Oakley Capital. In addition to that, Hyundai is 1.48 times more volatile than Oakley Capital Investments. It trades about -0.07 of its total potential returns per unit of risk. Oakley Capital Investments is currently generating about 0.16 per unit of volatility. If you would invest 48,950 in Oakley Capital Investments on September 26, 2024 and sell it today you would earn a total of 2,450 from holding Oakley Capital Investments or generate 5.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 86.36% |
Values | Daily Returns |
Hyundai Motor vs. Oakley Capital Investments
Performance |
Timeline |
Hyundai Motor |
Oakley Capital Inves |
Hyundai and Oakley Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai and Oakley Capital
The main advantage of trading using opposite Hyundai and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.Hyundai vs. Oakley Capital Investments | Hyundai vs. Cairn Homes PLC | Hyundai vs. alstria office REIT AG | Hyundai vs. Schroders Investment Trusts |
Oakley Capital vs. Samsung Electronics Co | Oakley Capital vs. Samsung Electronics Co | Oakley Capital vs. Hyundai Motor | Oakley Capital vs. Toyota Motor Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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