Correlation Between Hyundai and Hyzon Motors
Can any of the company-specific risk be diversified away by investing in both Hyundai and Hyzon Motors 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 Hyzon Motors 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 Hyzon Motors, you can compare the effects of market volatilities on Hyundai and Hyzon Motors 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 Hyzon Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Hyzon Motors.
Diversification Opportunities for Hyundai and Hyzon Motors
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Hyzon is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Hyzon Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyzon Motors 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 Hyzon Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyzon Motors has no effect on the direction of Hyundai i.e., Hyundai and Hyzon Motors go up and down completely randomly.
Pair Corralation between Hyundai and Hyzon Motors
Assuming the 90 days horizon Hyundai Motor Co is expected to generate 0.36 times more return on investment than Hyzon Motors. However, Hyundai Motor Co is 2.75 times less risky than Hyzon Motors. It trades about 0.07 of its potential returns per unit of risk. Hyzon Motors is currently generating about -0.15 per unit of risk. If you would invest 3,789 in Hyundai Motor Co on September 2, 2024 and sell it today you would earn a total of 1,792 from holding Hyundai Motor Co or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Hyzon Motors
Performance |
| Timeline |
| Hyundai Motor |
| Hyzon Motors |
Hyundai and Hyzon Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Hyzon Motors
The main advantage of trading using opposite Hyundai and Hyzon Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Hyzon Motors 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 Hyzon Motors will offset losses from the drop in Hyzon Motors' long position.The idea behind Hyundai Motor Co and Hyzon Motors 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.| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |