Correlation Between Hansa Investment and Hyundai
Can any of the company-specific risk be diversified away by investing in both Hansa 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 Hansa Investment and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and Hyundai Motor, you can compare the effects of market volatilities on Hansa 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 Hansa Investment with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and Hyundai.
Diversification Opportunities for Hansa Investment and Hyundai
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hansa and Hyundai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Hansa 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 Hansa Investment 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 Hansa Investment i.e., Hansa Investment and Hyundai go up and down completely randomly.
Pair Corralation between Hansa Investment and Hyundai
Assuming the 90 days trading horizon Hansa Investment is expected to generate 0.76 times more return on investment than Hyundai. However, Hansa Investment is 1.31 times less risky than Hyundai. It trades about 0.09 of its potential returns per unit of risk. Hyundai Motor is currently generating about -0.07 per unit of risk. If you would invest 22,100 in Hansa Investment on September 24, 2024 and sell it today you would earn a total of 600.00 from holding Hansa Investment or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Hansa Investment vs. Hyundai Motor
Performance |
| Timeline |
| Hansa Investment |
| Hyundai Motor |
Hansa Investment and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and Hyundai
The main advantage of trading using opposite Hansa Investment and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa 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.| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Fair Oaks Income | Hansa Investment vs. Legal General Group |
| Hyundai vs. The Mercantile Investment | Hyundai vs. Hansa Investment | Hyundai vs. Advanced Medical Solutions | Hyundai vs. Scandinavian Tobacco Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |