Correlation Between Hyundai Mobis and Lindeman Asia
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Lindeman Asia 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 Lindeman Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Lindeman Asia Investment, you can compare the effects of market volatilities on Hyundai Mobis and Lindeman Asia 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 Lindeman Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Lindeman Asia.
Diversification Opportunities for Hyundai Mobis and Lindeman Asia
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Lindeman is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Lindeman Asia Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindeman Asia Investment 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 Lindeman Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindeman Asia Investment has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Lindeman Asia go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Lindeman Asia
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 1.05 times less return on investment than Lindeman Asia. But when comparing it to its historical volatility, Hyundai Mobis is 2.41 times less risky than Lindeman Asia. It trades about 0.04 of its potential returns per unit of risk. Lindeman Asia Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 388,896 in Lindeman Asia Investment on August 24, 2024 and sell it today you would lose (40,896) from holding Lindeman Asia Investment or give up 10.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Mobis vs. Lindeman Asia Investment
Performance |
| Timeline |
| Hyundai Mobis |
| Lindeman Asia Investment |
Hyundai Mobis and Lindeman Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Mobis and Lindeman Asia
The main advantage of trading using opposite Hyundai Mobis and Lindeman Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Lindeman Asia 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 Lindeman Asia will offset losses from the drop in Lindeman Asia's long position.| Hyundai Mobis vs. Lindeman Asia Investment | Hyundai Mobis vs. SV Investment | Hyundai Mobis vs. SBI Investment KOREA | Hyundai Mobis vs. Woori Technology Investment |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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