Correlation Between FC Investment and Hyundai
Can any of the company-specific risk be diversified away by investing in both FC Investment 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 FC Investment and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and Hyundai Motor, you can compare the effects of market volatilities on FC Investment 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 FC Investment with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Hyundai.
Diversification Opportunities for FC Investment and Hyundai
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FCIT and Hyundai is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and FC Investment 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 FC Investment Trust 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 FC Investment i.e., FC Investment and Hyundai go up and down completely randomly.
Pair Corralation between FC Investment and Hyundai
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.33 times more return on investment than Hyundai. However, FC Investment Trust is 3.04 times less risky than Hyundai. It trades about 0.09 of its potential returns per unit of risk. Hyundai Motor is currently generating about -0.02 per unit of risk. If you would invest 103,036 in FC Investment Trust on October 16, 2024 and sell it today you would earn a total of 9,964 from holding FC Investment Trust or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.0% |
| Values | Daily Returns |
FC Investment Trust vs. Hyundai Motor
Performance |
| Timeline |
| FC Investment Trust |
| Hyundai Motor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FC Investment and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Hyundai
The main advantage of trading using opposite FC Investment and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment 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.| FC Investment vs. AfriTin Mining | FC Investment vs. Liontrust Asset Management | FC Investment vs. iShares Physical Silver | FC Investment vs. Hochschild Mining plc |
| Hyundai vs. Trainline Plc | Hyundai vs. Indutrade AB | Hyundai vs. FC Investment Trust | Hyundai vs. Gaztransport et Technigaz |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |