Correlation Between Hyundai and Cybin
Can any of the company-specific risk be diversified away by investing in both Hyundai and Cybin 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 Cybin 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 Cybin Inc, you can compare the effects of market volatilities on Hyundai and Cybin 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 Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Cybin.
Diversification Opportunities for Hyundai and Cybin
Excellent diversification
The 3 months correlation between Hyundai and Cybin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc 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 Cybin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cybin Inc has no effect on the direction of Hyundai i.e., Hyundai and Cybin go up and down completely randomly.
Pair Corralation between Hyundai and Cybin
Assuming the 90 days horizon Hyundai Motor Co is expected to under-perform the Cybin. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hyundai Motor Co is 3.37 times less risky than Cybin. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Cybin Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Cybin Inc on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Cybin Inc or generate 3.43% 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. Cybin Inc
Performance |
| Timeline |
| Hyundai Motor |
| Cybin Inc |
Hyundai and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Cybin
The main advantage of trading using opposite Hyundai and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Cybin 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 Cybin will offset losses from the drop in Cybin's long position.The idea behind Hyundai Motor Co and Cybin Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cybin vs. Mind Medicine | Cybin vs. Seelos Therapeutics | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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