Correlation Between KT Hitel and Hyundai Mobis
Can any of the company-specific risk be diversified away by investing in both KT Hitel and Hyundai Mobis 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 KT Hitel and Hyundai Mobis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Hitel and Hyundai Mobis, you can compare the effects of market volatilities on KT Hitel and Hyundai Mobis 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 KT Hitel with a short position of Hyundai Mobis. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Hitel and Hyundai Mobis.
Diversification Opportunities for KT Hitel and Hyundai Mobis
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 036030 and Hyundai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding KT Hitel and Hyundai Mobis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Mobis and KT Hitel 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 KT Hitel are associated (or correlated) with Hyundai Mobis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Mobis has no effect on the direction of KT Hitel i.e., KT Hitel and Hyundai Mobis go up and down completely randomly.
Pair Corralation between KT Hitel and Hyundai Mobis
Assuming the 90 days trading horizon KT Hitel is expected to under-perform the Hyundai Mobis. But the stock apears to be less risky and, when comparing its historical volatility, KT Hitel is 1.36 times less risky than Hyundai Mobis. The stock trades about -0.1 of its potential returns per unit of risk. The Hyundai Mobis is currently generating about 0.17 of returns per unit of risk over similar time horizon. 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 |
KT Hitel vs. Hyundai Mobis
Performance |
| Timeline |
| KT Hitel |
| Hyundai Mobis |
KT Hitel and Hyundai Mobis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Hitel and Hyundai Mobis
The main advantage of trading using opposite KT Hitel and Hyundai Mobis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Hitel position performs unexpectedly, Hyundai Mobis 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 Hyundai Mobis will offset losses from the drop in Hyundai Mobis' long position.| KT Hitel vs. Samsung Electronics Co | KT Hitel vs. Samsung Electronics Co | KT Hitel vs. LG Energy Solution | KT Hitel vs. SK Hynix |
| Hyundai Mobis vs. Nh Investment And | Hyundai Mobis vs. Hyundai Engineering Plastics | Hyundai Mobis vs. NH Investment Securities | Hyundai Mobis vs. Coloray International Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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