Correlation Between Hyundai and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Hyundai and Yura Tech 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 Yura Tech 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 Yura Tech Co, you can compare the effects of market volatilities on Hyundai and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Yura Tech.
Diversification Opportunities for Hyundai and Yura Tech
Very weak diversification
The 3 months correlation between Hyundai and Yura is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Hyundai i.e., Hyundai and Yura Tech go up and down completely randomly.
Pair Corralation between Hyundai and Yura Tech
Assuming the 90 days trading horizon Hyundai Motor Co is expected to generate 2.06 times more return on investment than Yura Tech. However, Hyundai is 2.06 times more volatile than Yura Tech Co. It trades about -0.04 of its potential returns per unit of risk. Yura Tech Co is currently generating about -0.29 per unit of risk. If you would invest 16,360,000 in Hyundai Motor Co on September 2, 2024 and sell it today you would lose (340,000) from holding Hyundai Motor Co or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Yura Tech Co
Performance |
| Timeline |
| Hyundai Motor |
| Yura Tech |
Hyundai and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Yura Tech
The main advantage of trading using opposite Hyundai and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Hyundai vs. Busan Industrial Co | Hyundai vs. Busan Ind | Hyundai vs. Mirae Asset Daewoo | Hyundai vs. Shinhan WTI Futures |
| Yura Tech vs. LG Display | Yura Tech vs. Hyundai Motor Co | Yura Tech vs. Hyundai Motor Co | Yura Tech vs. Adaptive Plasma Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |