Correlation Between Hyundai and Nissan
Can any of the company-specific risk be diversified away by investing in both Hyundai and Nissan 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 Nissan 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 Nissan Motor Co, you can compare the effects of market volatilities on Hyundai and Nissan 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 Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Nissan.
Diversification Opportunities for Hyundai and Nissan
Pay attention - limited upside
The 3 months correlation between Hyundai and Nissan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Nissan Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan Motor 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 Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan Motor has no effect on the direction of Hyundai i.e., Hyundai and Nissan go up and down completely randomly.
Pair Corralation between Hyundai and Nissan
If you would invest 3,237 in Hyundai Motor Co on November 9, 2024 and sell it today you would earn a total of 2,123 from holding Hyundai Motor Co or generate 65.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Nissan Motor Co
Performance |
| Timeline |
| Hyundai Motor |
| Nissan Motor |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Hyundai and Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Nissan
The main advantage of trading using opposite Hyundai and Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Nissan 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 Nissan will offset losses from the drop in Nissan's long position.The idea behind Hyundai Motor Co and Nissan Motor Co 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.| Nissan vs. Honda Motor Co | Nissan vs. Toyota Motor | Nissan vs. Hyundai Motor Co | Nissan vs. Mazda Motor Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |