Correlation Between Hyundai and MediaZen
Can any of the company-specific risk be diversified away by investing in both Hyundai and MediaZen 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 MediaZen 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 MediaZen, you can compare the effects of market volatilities on Hyundai and MediaZen 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 MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and MediaZen.
Diversification Opportunities for Hyundai and MediaZen
Very good diversification
The 3 months correlation between Hyundai and MediaZen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen 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 MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Hyundai i.e., Hyundai and MediaZen go up and down completely randomly.
Pair Corralation between Hyundai and MediaZen
Assuming the 90 days trading horizon Hyundai Motor Co is expected to generate 0.58 times more return on investment than MediaZen. However, Hyundai Motor Co is 1.72 times less risky than MediaZen. It trades about 0.11 of its potential returns per unit of risk. MediaZen is currently generating about 0.0 per unit of risk. If you would invest 6,472,415 in Hyundai Motor Co on September 3, 2024 and sell it today you would earn a total of 9,227,585 from holding Hyundai Motor Co or generate 142.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hyundai Motor Co vs. MediaZen
Performance |
| Timeline |
| Hyundai Motor |
| MediaZen |
Hyundai and MediaZen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and MediaZen
The main advantage of trading using opposite Hyundai and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.| Hyundai vs. NewFlex Technology Co | Hyundai vs. KG Eco Technology | Hyundai vs. Solution Advanced Technology | Hyundai vs. iNtRON Biotechnology |
| MediaZen vs. Vitzro Tech Co | MediaZen vs. Shinsung Delta Tech | MediaZen vs. SS TECH | MediaZen vs. Lion Chemtech Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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