Correlation Between Hyundai and Ladenburg Thalmann
Can any of the company-specific risk be diversified away by investing in both Hyundai and Ladenburg Thalmann 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 Ladenburg Thalmann 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 Ladenburg Thalmann Financial, you can compare the effects of market volatilities on Hyundai and Ladenburg Thalmann 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 Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Ladenburg Thalmann.
Diversification Opportunities for Hyundai and Ladenburg Thalmann
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and Ladenburg is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann 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 Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of Hyundai i.e., Hyundai and Ladenburg Thalmann go up and down completely randomly.
Pair Corralation between Hyundai and Ladenburg Thalmann
Assuming the 90 days horizon Hyundai Motor Co is expected to generate 1.17 times more return on investment than Ladenburg Thalmann. However, Hyundai is 1.17 times more volatile than Ladenburg Thalmann Financial. It trades about 0.07 of its potential returns per unit of risk. Ladenburg Thalmann Financial is currently generating about 0.07 per unit of risk. If you would invest 2,727 in Hyundai Motor Co on September 13, 2024 and sell it today you would earn a total of 2,673 from holding Hyundai Motor Co or generate 98.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.87% |
| Values | Daily Returns |
Hyundai Motor Co vs. Ladenburg Thalmann Financial
Performance |
| Timeline |
| Hyundai Motor |
| Ladenburg Thalmann |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hyundai and Ladenburg Thalmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Ladenburg Thalmann
The main advantage of trading using opposite Hyundai and Ladenburg Thalmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Ladenburg Thalmann 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 Ladenburg Thalmann will offset losses from the drop in Ladenburg Thalmann's long position.| Hyundai vs. Volkswagen AG 110 | Hyundai vs. Porsche Automobil Holding | Hyundai vs. Ferrari NV | Hyundai vs. Porsche Automobile 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance |