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 good diversification
The 3 months correlation between Hyundai and Yura is -0.35. 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 is expected to generate 2.14 times less return on investment than Yura Tech. But when comparing it to its historical volatility, Hyundai Motor Co is 1.47 times less risky than Yura Tech. It trades about 0.1 of its potential returns per unit of risk. Yura Tech Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 794,000 in Yura Tech Co on November 1, 2024 and sell it today you would earn a total of 36,000 from holding Yura Tech Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. MetaLabs Co | Hyundai vs. Youngchang Chemical Co | Hyundai vs. Daewon Chemical Co | Hyundai vs. ISU Chemical Co |
| Yura Tech vs. Hwangkum Steel Technology | Yura Tech vs. Cots Technology Co | Yura Tech vs. Aprogen Healthcare Games | Yura Tech vs. Lotte Chilsung Beverage |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |