Correlation Between Hyundai and NexturnBioscience
Can any of the company-specific risk be diversified away by investing in both Hyundai and NexturnBioscience 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 NexturnBioscience 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 NexturnBioscience Co, you can compare the effects of market volatilities on Hyundai and NexturnBioscience 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 NexturnBioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and NexturnBioscience.
Diversification Opportunities for Hyundai and NexturnBioscience
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and NexturnBioscience is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and NexturnBioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexturnBioscience 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 NexturnBioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexturnBioscience has no effect on the direction of Hyundai i.e., Hyundai and NexturnBioscience go up and down completely randomly.
Pair Corralation between Hyundai and NexturnBioscience
Assuming the 90 days trading horizon Hyundai is expected to generate 3.85 times less return on investment than NexturnBioscience. But when comparing it to its historical volatility, Hyundai Motor Co is 1.89 times less risky than NexturnBioscience. It trades about 0.04 of its potential returns per unit of risk. NexturnBioscience Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 253,500 in NexturnBioscience Co on January 30, 2025 and sell it today you would earn a total of 14,000 from holding NexturnBioscience Co or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. NexturnBioscience Co
Performance |
| Timeline |
| Hyundai Motor |
| NexturnBioscience |
Hyundai and NexturnBioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and NexturnBioscience
The main advantage of trading using opposite Hyundai and NexturnBioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, NexturnBioscience 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 NexturnBioscience will offset losses from the drop in NexturnBioscience's long position.| Hyundai vs. Woori Financial Group | Hyundai vs. Industrial Bank | Hyundai vs. Pureun Mutual Savings | Hyundai vs. Kisan Telecom Co |
| NexturnBioscience vs. BGF Retail Co | NexturnBioscience vs. Vitzro Tech Co | NexturnBioscience vs. CU Tech Corp | NexturnBioscience vs. Kukdong Oil Chemicals |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |