Correlation Between Gaztransport and Hyundai
Can any of the company-specific risk be diversified away by investing in both Gaztransport 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 Gaztransport and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Hyundai Motor, you can compare the effects of market volatilities on Gaztransport 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 Gaztransport with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Hyundai.
Diversification Opportunities for Gaztransport and Hyundai
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Hyundai is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Gaztransport 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 Gaztransport et Technigaz 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 Gaztransport i.e., Gaztransport and Hyundai go up and down completely randomly.
Pair Corralation between Gaztransport and Hyundai
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to under-perform the Hyundai. But the stock apears to be less risky and, when comparing its historical volatility, Gaztransport et Technigaz is 2.05 times less risky than Hyundai. The stock trades about -0.06 of its potential returns per unit of risk. The Hyundai Motor is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,160 in Hyundai Motor on September 14, 2024 and sell it today you would earn a total of 120.00 from holding Hyundai Motor or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Hyundai Motor
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Hyundai Motor |
Gaztransport and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Hyundai
The main advantage of trading using opposite Gaztransport and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport 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.| Gaztransport vs. Park Hotels Resorts | Gaztransport vs. Ross Stores | Gaztransport vs. Melia Hotels | Gaztransport vs. Silvercorp Metals |
| Hyundai vs. Supermarket Income REIT | Hyundai vs. Gaztransport et Technigaz | Hyundai vs. Ion Beam Applications | Hyundai vs. Extra Space Storage |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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