Correlation Between EV Advanced and Hyundai Engineering
Can any of the company-specific risk be diversified away by investing in both EV Advanced and Hyundai Engineering 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 EV Advanced and Hyundai Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EV Advanced Material and Hyundai Engineering Plastics, you can compare the effects of market volatilities on EV Advanced and Hyundai Engineering 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 EV Advanced with a short position of Hyundai Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of EV Advanced and Hyundai Engineering.
Diversification Opportunities for EV Advanced and Hyundai Engineering
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 131400 and Hyundai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding EV Advanced Material and Hyundai Engineering Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Engineering and EV Advanced 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 EV Advanced Material are associated (or correlated) with Hyundai Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Engineering has no effect on the direction of EV Advanced i.e., EV Advanced and Hyundai Engineering go up and down completely randomly.
Pair Corralation between EV Advanced and Hyundai Engineering
Assuming the 90 days trading horizon EV Advanced is expected to generate 3.46 times less return on investment than Hyundai Engineering. In addition to that, EV Advanced is 2.82 times more volatile than Hyundai Engineering Plastics. It trades about 0.0 of its total potential returns per unit of risk. Hyundai Engineering Plastics is currently generating about 0.04 per unit of volatility. If you would invest 344,000 in Hyundai Engineering Plastics on November 3, 2024 and sell it today you would earn a total of 1,500 from holding Hyundai Engineering Plastics or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EV Advanced Material vs. Hyundai Engineering Plastics
Performance |
| Timeline |
| EV Advanced Material |
| Hyundai Engineering |
EV Advanced and Hyundai Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EV Advanced and Hyundai Engineering
The main advantage of trading using opposite EV Advanced and Hyundai Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EV Advanced position performs unexpectedly, Hyundai Engineering 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 Engineering will offset losses from the drop in Hyundai Engineering's long position.| EV Advanced vs. Vissem Electronics Co | EV Advanced vs. Shinil Electronics Co | EV Advanced vs. SungMoon Electronics Co | EV Advanced vs. PJ Electronics Co |
| Hyundai Engineering vs. Coloray International Investment | Hyundai Engineering vs. Nable Communications | Hyundai Engineering vs. DSC Investment | Hyundai Engineering vs. Sangsangin Investment Securities |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |