Correlation Between Hyundai and Cho Bi
Can any of the company-specific risk be diversified away by investing in both Hyundai and Cho Bi 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 Cho Bi 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 Cho Bi, you can compare the effects of market volatilities on Hyundai and Cho Bi 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 Cho Bi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Cho Bi.
Diversification Opportunities for Hyundai and Cho Bi
Pay attention - limited upside
The 3 months correlation between Hyundai and Cho is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Cho Bi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Bi 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 Cho Bi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Bi has no effect on the direction of Hyundai i.e., Hyundai and Cho Bi go up and down completely randomly.
Pair Corralation between Hyundai and Cho Bi
If you would invest 9,535,913 in Hyundai Motor Co on September 2, 2024 and sell it today you would earn a total of 6,484,087 from holding Hyundai Motor Co or generate 68.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Cho Bi
Performance |
| Timeline |
| Hyundai Motor |
| Cho Bi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hyundai and Cho Bi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Cho Bi
The main advantage of trading using opposite Hyundai and Cho Bi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Cho Bi 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 Cho Bi will offset losses from the drop in Cho Bi's long position.| Hyundai vs. Busan Industrial Co | Hyundai vs. Busan Ind | Hyundai vs. Mirae Asset Daewoo | Hyundai vs. Shinhan WTI Futures |
| Cho Bi vs. Konan Technology | Cho Bi vs. Hwangkum Steel Technology | Cho Bi vs. Bohae Brewery | Cho Bi vs. Dongbang Transport Logistics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets |