Correlation Between MOL Hungarian and Hyundai
Can any of the company-specific risk be diversified away by investing in both MOL Hungarian 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 MOL Hungarian and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Hungarian Oil and Hyundai Motor, you can compare the effects of market volatilities on MOL Hungarian 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 MOL Hungarian with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Hungarian and Hyundai.
Diversification Opportunities for MOL Hungarian and Hyundai
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between MOL and Hyundai is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and MOL Hungarian 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 MOL Hungarian Oil 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 MOL Hungarian i.e., MOL Hungarian and Hyundai go up and down completely randomly.
Pair Corralation between MOL Hungarian and Hyundai
Assuming the 90 days trading horizon MOL Hungarian is expected to generate 5.0 times less return on investment than Hyundai. But when comparing it to its historical volatility, MOL Hungarian Oil is 1.52 times less risky than Hyundai. It trades about 0.02 of its potential returns per unit of risk. Hyundai Motor is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,745 in Hyundai Motor on August 28, 2024 and sell it today you would earn a total of 2,915 from holding Hyundai Motor or generate 106.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.11% |
| Values | Daily Returns |
MOL Hungarian Oil vs. Hyundai Motor
Performance |
| Timeline |
| MOL Hungarian Oil |
| Hyundai Motor |
MOL Hungarian and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Hungarian and Hyundai
The main advantage of trading using opposite MOL Hungarian and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian 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.| MOL Hungarian vs. Samsung Electronics Co | MOL Hungarian vs. Automatic Data Processing | MOL Hungarian vs. Creo Medical Group | MOL Hungarian vs. Datalogic |
| Hyundai vs. MG Plc | Hyundai vs. Admiral Group PLC | Hyundai vs. Anglo American PLC | Hyundai vs. Vodafone Group PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |