Correlation Between Hyundai and CC International
Can any of the company-specific risk be diversified away by investing in both Hyundai and CC International 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 CC International 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 CC International Corp, you can compare the effects of market volatilities on Hyundai and CC International 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 CC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and CC International.
Diversification Opportunities for Hyundai and CC International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and 352480 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and CC International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CC International Corp 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 CC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CC International Corp has no effect on the direction of Hyundai i.e., Hyundai and CC International go up and down completely randomly.
Pair Corralation between Hyundai and CC International
Assuming the 90 days trading horizon Hyundai Motor Co is expected to generate 0.36 times more return on investment than CC International. However, Hyundai Motor Co is 2.82 times less risky than CC International. It trades about -0.04 of its potential returns per unit of risk. CC International Corp is currently generating about -0.39 per unit of risk. If you would invest 17,540,000 in Hyundai Motor Co on August 29, 2024 and sell it today you would lose (520,000) from holding Hyundai Motor Co or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. CC International Corp
Performance |
| Timeline |
| Hyundai Motor |
| CC International Corp |
Hyundai and CC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and CC International
The main advantage of trading using opposite Hyundai and CC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, CC International 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 CC International will offset losses from the drop in CC International's long position.| Hyundai vs. Hyundai Motor Co | Hyundai vs. Busan Industrial Co | Hyundai vs. Busan Ind | Hyundai vs. Mirae Asset Daewoo |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |