Correlation Between Hyundai and Ananti
Can any of the company-specific risk be diversified away by investing in both Hyundai and Ananti 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 Ananti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Ananti Inc, you can compare the effects of market volatilities on Hyundai and Ananti 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 Ananti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Ananti.
Diversification Opportunities for Hyundai and Ananti
Very good diversification
The 3 months correlation between Hyundai and Ananti is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Ananti Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananti Inc 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 Ananti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananti Inc has no effect on the direction of Hyundai i.e., Hyundai and Ananti go up and down completely randomly.
Pair Corralation between Hyundai and Ananti
Assuming the 90 days trading horizon Hyundai Motor is expected to under-perform the Ananti. But the stock apears to be less risky and, when comparing its historical volatility, Hyundai Motor is 1.6 times less risky than Ananti. The stock trades about -0.05 of its potential returns per unit of risk. The Ananti Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 517,000 in Ananti Inc on September 3, 2024 and sell it today you would earn a total of 29,000 from holding Ananti Inc or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor vs. Ananti Inc
Performance |
| Timeline |
| Hyundai Motor |
| Ananti Inc |
Hyundai and Ananti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Ananti
The main advantage of trading using opposite Hyundai and Ananti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Ananti 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 Ananti will offset losses from the drop in Ananti's long position.| Hyundai vs. Dongbu Insurance Co | Hyundai vs. Okins Electronics Co | Hyundai vs. Total Soft Bank | Hyundai vs. Samji Electronics Co |
| Ananti vs. Dongwha Enterprise CoLtd | Ananti vs. InBody CoLtd | Ananti vs. Seegene | Ananti vs. Dongsin Engineering Construction |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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