Correlation Between Hyundai Mobis and Worldex Industry
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Worldex Industry 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 Worldex Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Worldex Industry Trading, you can compare the effects of market volatilities on Hyundai Mobis and Worldex Industry 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 Worldex Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Worldex Industry.
Diversification Opportunities for Hyundai Mobis and Worldex Industry
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and Worldex is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Worldex Industry Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldex Industry Trading 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 Worldex Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldex Industry Trading has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Worldex Industry go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Worldex Industry
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 0.85 times more return on investment than Worldex Industry. However, Hyundai Mobis is 1.17 times less risky than Worldex Industry. It trades about 0.17 of its potential returns per unit of risk. Worldex Industry Trading is currently generating about 0.08 per unit of risk. If you would invest 23,750,000 in Hyundai Mobis on October 17, 2024 and sell it today you would earn a total of 1,600,000 from holding Hyundai Mobis or generate 6.74% 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. Worldex Industry Trading
Performance |
| Timeline |
| Hyundai Mobis |
| Worldex Industry Trading |
Hyundai Mobis and Worldex Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and Worldex Industry
The main advantage of trading using opposite Hyundai Mobis and Worldex Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Worldex Industry 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 Worldex Industry will offset losses from the drop in Worldex Industry's long position.| Hyundai Mobis vs. Nh Investment And | Hyundai Mobis vs. Hyundai Engineering Plastics | Hyundai Mobis vs. NH Investment Securities | Hyundai Mobis vs. Coloray International Investment |
| Worldex Industry vs. WONIK Materials CoLtd | Worldex Industry vs. SS TECH | Worldex Industry vs. TES Co | Worldex Industry vs. LEENO Industrial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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