Correlation Between Infinitt Healthcare and Hyundai Heavy
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Hyundai Heavy 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 Infinitt Healthcare and Hyundai Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinitt Healthcare Co and Hyundai Heavy Industries, you can compare the effects of market volatilities on Infinitt Healthcare and Hyundai Heavy 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 Infinitt Healthcare with a short position of Hyundai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Hyundai Heavy.
Diversification Opportunities for Infinitt Healthcare and Hyundai Heavy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinitt and Hyundai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Hyundai Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Heavy Industries and Infinitt Healthcare 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 Infinitt Healthcare Co are associated (or correlated) with Hyundai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Heavy Industries has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Hyundai Heavy go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Hyundai Heavy
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to under-perform the Hyundai Heavy. In addition to that, Infinitt Healthcare is 1.09 times more volatile than Hyundai Heavy Industries. It trades about -0.02 of its total potential returns per unit of risk. Hyundai Heavy Industries is currently generating about 0.05 per unit of volatility. If you would invest 5,247,733 in Hyundai Heavy Industries on November 27, 2024 and sell it today you would earn a total of 2,352,267 from holding Hyundai Heavy Industries or generate 44.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.38% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Hyundai Heavy Industries
Performance |
| Timeline |
| Infinitt Healthcare |
| Hyundai Heavy Industries |
Infinitt Healthcare and Hyundai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Hyundai Heavy
The main advantage of trading using opposite Infinitt Healthcare and Hyundai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Hyundai Heavy 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 Heavy will offset losses from the drop in Hyundai Heavy's long position.| Infinitt Healthcare vs. CKH Food Health | Infinitt Healthcare vs. LG Household Healthcare | Infinitt Healthcare vs. Osang Healthcare Co,Ltd | Infinitt Healthcare vs. LG Household Healthcare |
| Hyundai Heavy vs. TJ media Co | Hyundai Heavy vs. ChipsMedia | Hyundai Heavy vs. Korea Alcohol Industrial | Hyundai Heavy vs. DC Media 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |