Correlation Between Hyundai Mobis and Leaders Technology
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Leaders Technology 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 Mobis and Leaders Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Leaders Technology Investment, you can compare the effects of market volatilities on Hyundai Mobis and Leaders Technology 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 Mobis with a short position of Leaders Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Leaders Technology.
Diversification Opportunities for Hyundai Mobis and Leaders Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and Leaders is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Leaders Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaders Technology and Hyundai Mobis 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 Mobis are associated (or correlated) with Leaders Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaders Technology has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Leaders Technology go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Leaders Technology
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 0.59 times more return on investment than Leaders Technology. However, Hyundai Mobis is 1.68 times less risky than Leaders Technology. It trades about 0.14 of its potential returns per unit of risk. Leaders Technology Investment is currently generating about 0.04 per unit of risk. If you would invest 24,400,000 in Hyundai Mobis on October 14, 2024 and sell it today you would earn a total of 1,350,000 from holding Hyundai Mobis or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Mobis vs. Leaders Technology Investment
Performance |
| Timeline |
| Hyundai Mobis |
| Leaders Technology |
Hyundai Mobis and Leaders Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and Leaders Technology
The main advantage of trading using opposite Hyundai Mobis and Leaders Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Leaders Technology 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 Leaders Technology will offset losses from the drop in Leaders Technology's long position.| Hyundai Mobis vs. Hwangkum Steel Technology | Hyundai Mobis vs. ENF Technology Co | Hyundai Mobis vs. Atinum Investment Co | Hyundai Mobis vs. BIT Computer Co |
| Leaders Technology vs. Samlip General Foods | Leaders Technology vs. Sam Yang Foods | Leaders Technology vs. Daejung Chemicals Metals | Leaders Technology vs. Sajo Seafood |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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