Correlation Between Hyundai Mobis and KPX Green
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and KPX Green 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 KPX Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and KPX Green Chemical, you can compare the effects of market volatilities on Hyundai Mobis and KPX Green 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 KPX Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and KPX Green.
Diversification Opportunities for Hyundai Mobis and KPX Green
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyundai and KPX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and KPX Green Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPX Green Chemical 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 KPX Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPX Green Chemical has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and KPX Green go up and down completely randomly.
Pair Corralation between Hyundai Mobis and KPX Green
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 0.59 times more return on investment than KPX Green. However, Hyundai Mobis is 1.69 times less risky than KPX Green. It trades about 0.03 of its potential returns per unit of risk. KPX Green Chemical is currently generating about -0.01 per unit of risk. If you would invest 20,258,600 in Hyundai Mobis on September 26, 2024 and sell it today you would earn a total of 4,041,400 from holding Hyundai Mobis or generate 19.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hyundai Mobis vs. KPX Green Chemical
Performance |
| Timeline |
| Hyundai Mobis |
| KPX Green Chemical |
Hyundai Mobis and KPX Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and KPX Green
The main advantage of trading using opposite Hyundai Mobis and KPX Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, KPX Green 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 KPX Green will offset losses from the drop in KPX Green's long position.| Hyundai Mobis vs. Woori Technology Investment | Hyundai Mobis vs. Samsung Card Co | Hyundai Mobis vs. Korea Real Estate | Hyundai Mobis vs. CHOROKBAEM PANY Co |
| KPX Green vs. Koryo Credit Information | KPX Green vs. Moadata Co | KPX Green vs. PlayD Co | KPX Green vs. LG Display Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |