Correlation Between Intellian Technologies and Hyundai
Can any of the company-specific risk be diversified away by investing in both Intellian Technologies 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 Intellian Technologies and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellian Technologies and Hyundai Motor, you can compare the effects of market volatilities on Intellian Technologies 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 Intellian Technologies with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and Hyundai.
Diversification Opportunities for Intellian Technologies and Hyundai
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intellian and Hyundai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Intellian Technologies 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 Intellian Technologies 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 Intellian Technologies i.e., Intellian Technologies and Hyundai go up and down completely randomly.
Pair Corralation between Intellian Technologies and Hyundai
Assuming the 90 days trading horizon Intellian Technologies is expected to under-perform the Hyundai. In addition to that, Intellian Technologies is 1.95 times more volatile than Hyundai Motor. It trades about -0.17 of its total potential returns per unit of risk. Hyundai Motor is currently generating about 0.0 per unit of volatility. If you would invest 22,050,000 in Hyundai Motor on August 31, 2024 and sell it today you would lose (150,000) from holding Hyundai Motor or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellian Technologies vs. Hyundai Motor
Performance |
| Timeline |
| Intellian Technologies |
| Hyundai Motor |
Intellian Technologies and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellian Technologies and Hyundai
The main advantage of trading using opposite Intellian Technologies and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies 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.| Intellian Technologies vs. Dongsin Engineering Construction | Intellian Technologies vs. Doosan Fuel Cell | Intellian Technologies vs. Daishin Balance 1 | Intellian Technologies vs. Total Soft Bank |
| Hyundai vs. LG Display | Hyundai vs. Hyundai Motor Co | Hyundai vs. Hyundai Motor Co | Hyundai vs. Adaptive Plasma Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |