Correlation Between Hyundai and Landos Biopharma
Can any of the company-specific risk be diversified away by investing in both Hyundai and Landos Biopharma 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 Landos Biopharma 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 Landos Biopharma, you can compare the effects of market volatilities on Hyundai and Landos Biopharma 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 Landos Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Landos Biopharma.
Diversification Opportunities for Hyundai and Landos Biopharma
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Landos is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Landos Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landos Biopharma 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 Landos Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landos Biopharma has no effect on the direction of Hyundai i.e., Hyundai and Landos Biopharma go up and down completely randomly.
Pair Corralation between Hyundai and Landos Biopharma
Assuming the 90 days horizon Hyundai is expected to generate 3.96 times less return on investment than Landos Biopharma. But when comparing it to its historical volatility, Hyundai Motor Co is 3.4 times less risky than Landos Biopharma. It trades about 0.07 of its potential returns per unit of risk. Landos Biopharma is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Landos Biopharma on August 24, 2024 and sell it today you would earn a total of 172.00 from holding Landos Biopharma or generate 74.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Hyundai Motor Co vs. Landos Biopharma
Performance |
| Timeline |
| Hyundai Motor |
| Landos Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hyundai and Landos Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Landos Biopharma
The main advantage of trading using opposite Hyundai and Landos Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Landos Biopharma 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 Landos Biopharma will offset losses from the drop in Landos Biopharma's long position.The idea behind Hyundai Motor Co and Landos Biopharma 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.| Landos Biopharma vs. Apollomics Class A | Landos Biopharma vs. Cardio Diagnostics Holdings | Landos Biopharma vs. Transcode Therapeutics | Landos Biopharma vs. Xenetic Biosciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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