Correlation Between Hyundai and Hugel
Can any of the company-specific risk be diversified away by investing in both Hyundai and Hugel 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 Hugel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Hugel Inc, you can compare the effects of market volatilities on Hyundai and Hugel 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 Hugel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Hugel.
Diversification Opportunities for Hyundai and Hugel
Very good diversification
The 3 months correlation between Hyundai and Hugel is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Hugel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugel 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 Hugel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugel Inc has no effect on the direction of Hyundai i.e., Hyundai and Hugel go up and down completely randomly.
Pair Corralation between Hyundai and Hugel
Assuming the 90 days trading horizon Hyundai Motor is expected to generate 0.49 times more return on investment than Hugel. However, Hyundai Motor is 2.03 times less risky than Hugel. It trades about 0.04 of its potential returns per unit of risk. Hugel Inc is currently generating about -0.03 per unit of risk. If you would invest 21,500,000 in Hyundai Motor on September 1, 2024 and sell it today you would earn a total of 350,000 from holding Hyundai Motor or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyundai Motor vs. Hugel Inc
Performance |
| Timeline |
| Hyundai Motor |
| Hugel Inc |
Hyundai and Hugel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Hugel
The main advantage of trading using opposite Hyundai and Hugel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Hugel 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 Hugel will offset losses from the drop in Hugel's long position.| Hyundai vs. LG Display | Hyundai vs. Hyundai Motor Co | Hyundai vs. Hyundai Motor Co | Hyundai vs. Adaptive Plasma Technology |
| Hugel vs. Hanmi Semiconductor Co | Hugel vs. EBEST Investment Securities | Hugel vs. Sangsangin Investment Securities | Hugel vs. Daol Investment Securities |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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