Correlation Between Hyundai Heavy and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Hyundai Heavy and Infinitt Healthcare 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 Hyundai Heavy and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Heavy Industries and Infinitt Healthcare Co, you can compare the effects of market volatilities on Hyundai Heavy and Infinitt Healthcare 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 Hyundai Heavy with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Heavy and Infinitt Healthcare.
Diversification Opportunities for Hyundai Heavy and Infinitt Healthcare
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyundai and Infinitt is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Heavy Industries and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Hyundai Heavy 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 Hyundai Heavy Industries are associated (or correlated) with Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Hyundai Heavy i.e., Hyundai Heavy and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Hyundai Heavy and Infinitt Healthcare
Assuming the 90 days trading horizon Hyundai Heavy Industries is expected to generate 1.06 times more return on investment than Infinitt Healthcare. However, Hyundai Heavy is 1.06 times more volatile than Infinitt Healthcare Co. It trades about 0.07 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.06 per unit of risk. If you would invest 6,829,129 in Hyundai Heavy Industries on September 1, 2024 and sell it today you would earn a total of 950,871 from holding Hyundai Heavy Industries or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Hyundai Heavy Industries vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Hyundai Heavy Industries |
| Infinitt Healthcare |
Hyundai Heavy and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Heavy and Infinitt Healthcare
The main advantage of trading using opposite Hyundai Heavy and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Heavy position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Hyundai Heavy vs. Union Materials Corp | Hyundai Heavy vs. Daejoo Electronic Materials | Hyundai Heavy vs. Ecoplastic | Hyundai Heavy vs. Netmarble Games Corp |
| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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