Correlation Between Hyundai and Lotte Reit
Can any of the company-specific risk be diversified away by investing in both Hyundai and Lotte Reit 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 Lotte Reit 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 Lotte Reit Co, you can compare the effects of market volatilities on Hyundai and Lotte Reit 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 Lotte Reit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Lotte Reit.
Diversification Opportunities for Hyundai and Lotte Reit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Lotte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Lotte Reit Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Reit 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 Lotte Reit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Reit has no effect on the direction of Hyundai i.e., Hyundai and Lotte Reit go up and down completely randomly.
Pair Corralation between Hyundai and Lotte Reit
If you would invest 14,980,800 in Hyundai Motor Co on December 2, 2024 and sell it today you would earn a total of 519,200 from holding Hyundai Motor Co or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.42% |
| Values | Daily Returns |
Hyundai Motor Co vs. Lotte Reit Co
Performance |
| Timeline |
| Hyundai Motor |
| Lotte Reit |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Hyundai and Lotte Reit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Lotte Reit
The main advantage of trading using opposite Hyundai and Lotte Reit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Lotte Reit 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 Lotte Reit will offset losses from the drop in Lotte Reit's long position.| Hyundai vs. Aju IB Investment | Hyundai vs. Jb Financial | Hyundai vs. Worldex Industry Trading | Hyundai vs. DB Insurance Co |
| Lotte Reit vs. Korea Investment Holdings | Lotte Reit vs. Coloray International Investment | Lotte Reit vs. Daol Investment Securities | Lotte Reit vs. Sam Yang Foods |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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