Correlation Between GS Retail and Hyundai Mobis
Can any of the company-specific risk be diversified away by investing in both GS Retail and Hyundai Mobis 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 GS Retail and Hyundai Mobis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Hyundai Mobis, you can compare the effects of market volatilities on GS Retail and Hyundai Mobis 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 GS Retail with a short position of Hyundai Mobis. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Hyundai Mobis.
Diversification Opportunities for GS Retail and Hyundai Mobis
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 007070 and Hyundai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Hyundai Mobis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Mobis and GS Retail 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 GS Retail Co are associated (or correlated) with Hyundai Mobis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Mobis has no effect on the direction of GS Retail i.e., GS Retail and Hyundai Mobis go up and down completely randomly.
Pair Corralation between GS Retail and Hyundai Mobis
Assuming the 90 days trading horizon GS Retail is expected to generate 7.85 times less return on investment than Hyundai Mobis. But when comparing it to its historical volatility, GS Retail Co is 1.04 times less risky than Hyundai Mobis. It trades about 0.0 of its potential returns per unit of risk. Hyundai Mobis is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21,530,900 in Hyundai Mobis on August 31, 2024 and sell it today you would earn a total of 3,019,100 from holding Hyundai Mobis or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
GS Retail Co vs. Hyundai Mobis
Performance |
| Timeline |
| GS Retail |
| Hyundai Mobis |
GS Retail and Hyundai Mobis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Hyundai Mobis
The main advantage of trading using opposite GS Retail and Hyundai Mobis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Hyundai Mobis 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 Hyundai Mobis will offset losses from the drop in Hyundai Mobis' long position.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
| Hyundai Mobis vs. Solution Advanced Technology | Hyundai Mobis vs. Korea Shipbuilding Offshore | Hyundai Mobis vs. Digital Multimedia Technology | Hyundai Mobis vs. Konan 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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