Correlation Between Hyundai Mobis and Hironic Co
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Hironic Co 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 Hironic Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Hironic Co, you can compare the effects of market volatilities on Hyundai Mobis and Hironic Co 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 Hironic Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Hironic Co.
Diversification Opportunities for Hyundai Mobis and Hironic Co
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and Hironic is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Hironic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hironic Co 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 Hironic Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hironic Co has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Hironic Co go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Hironic Co
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 0.37 times more return on investment than Hironic Co. However, Hyundai Mobis is 2.68 times less risky than Hironic Co. It trades about -0.03 of its potential returns per unit of risk. Hironic Co is currently generating about -0.07 per unit of risk. If you would invest 24,600,000 in Hyundai Mobis on September 28, 2024 and sell it today you would lose (400,000) from holding Hyundai Mobis or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hyundai Mobis vs. Hironic Co
Performance |
| Timeline |
| Hyundai Mobis |
| Hironic Co |
Hyundai Mobis and Hironic Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and Hironic Co
The main advantage of trading using opposite Hyundai Mobis and Hironic Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Hironic Co 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 Hironic Co will offset losses from the drop in Hironic Co'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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