Correlation Between Hyundai and Cloetta AB
Can any of the company-specific risk be diversified away by investing in both Hyundai and Cloetta AB 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 and Cloetta AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor Co and Cloetta AB ser, you can compare the effects of market volatilities on Hyundai and Cloetta AB 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 with a short position of Cloetta AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Cloetta AB.
Diversification Opportunities for Hyundai and Cloetta AB
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyundai and Cloetta is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Cloetta AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloetta AB ser and Hyundai 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 Motor Co are associated (or correlated) with Cloetta AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloetta AB ser has no effect on the direction of Hyundai i.e., Hyundai and Cloetta AB go up and down completely randomly.
Pair Corralation between Hyundai and Cloetta AB
If you would invest 240.00 in Cloetta AB ser on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Cloetta AB ser or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Cloetta AB ser
Performance |
| Timeline |
| Hyundai Motor |
| Cloetta AB ser |
Hyundai and Cloetta AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Cloetta AB
The main advantage of trading using opposite Hyundai and Cloetta AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Cloetta AB 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 Cloetta AB will offset losses from the drop in Cloetta AB's long position.| Hyundai vs. Buhler Industries | Hyundai vs. AmeraMex International | Hyundai vs. Textainer Group Holdings | Hyundai vs. Deere Company |
| Cloetta AB vs. Kaiser Aluminum | Cloetta AB vs. Western Copper and | Cloetta AB vs. Digi International | Cloetta AB vs. Payoneer Global |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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