Correlation Between E Investment and Hyundai
Can any of the company-specific risk be diversified away by investing in both E Investment 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 E Investment and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Hyundai Motor, you can compare the effects of market volatilities on E Investment 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 E Investment with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Hyundai.
Diversification Opportunities for E Investment and Hyundai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Hyundai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and E Investment 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 E Investment Development 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 E Investment i.e., E Investment and Hyundai go up and down completely randomly.
Pair Corralation between E Investment and Hyundai
If you would invest 139,200 in E Investment Development on December 8, 2024 and sell it today you would earn a total of 0.00 from holding E Investment Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
E Investment Development vs. Hyundai Motor
Performance |
| Timeline |
| E Investment Development |
| Hyundai Motor |
E Investment and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Hyundai
The main advantage of trading using opposite E Investment and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment 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.| E Investment vs. Daewoo Engineering Construction | E Investment vs. ENERGYMACHINERY KOREA CoLtd | E Investment vs. Foodnamoo | E Investment vs. FoodNamoo |
| Hyundai vs. Namyang Dairy | Hyundai vs. FOODWELL Co | Hyundai vs. Samji Electronics Co | Hyundai vs. CJ Seafood Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |