Correlation Between HLB Power and Hyundai
Can any of the company-specific risk be diversified away by investing in both HLB Power and Hyundai 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 HLB Power and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HLB Power Co and Hyundai Motor Co, you can compare the effects of market volatilities on HLB Power and Hyundai 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 HLB Power with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLB Power and Hyundai.
Diversification Opportunities for HLB Power and Hyundai
Poor diversification
The 3 months correlation between HLB and Hyundai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HLB Power Co and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and HLB Power 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 HLB Power Co are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of HLB Power i.e., HLB Power and Hyundai go up and down completely randomly.
Pair Corralation between HLB Power and Hyundai
Assuming the 90 days trading horizon HLB Power Co is expected to under-perform the Hyundai. In addition to that, HLB Power is 2.05 times more volatile than Hyundai Motor Co. It trades about -0.03 of its total potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.11 per unit of volatility. If you would invest 6,611,872 in Hyundai Motor Co on September 12, 2024 and sell it today you would earn a total of 8,998,128 from holding Hyundai Motor Co or generate 136.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HLB Power Co vs. Hyundai Motor Co
Performance |
| Timeline |
| HLB Power |
| Hyundai Motor |
HLB Power and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLB Power and Hyundai
The main advantage of trading using opposite HLB Power and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLB Power position performs unexpectedly, Hyundai 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 will offset losses from the drop in Hyundai's long position.| HLB Power vs. Cloud Air CoLtd | HLB Power vs. Jin Air Co | HLB Power vs. Daejung Chemicals Metals | HLB Power vs. iNtRON Biotechnology |
| Hyundai vs. Mobileleader CoLtd | Hyundai vs. KT Submarine Telecom | Hyundai vs. Automobile Pc | Hyundai vs. Hansol Chemical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |