Correlation Between Hyundai and Procaps Group
Can any of the company-specific risk be diversified away by investing in both Hyundai and Procaps Group 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 Procaps Group 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 Procaps Group SA, you can compare the effects of market volatilities on Hyundai and Procaps Group 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 Procaps Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Procaps Group.
Diversification Opportunities for Hyundai and Procaps Group
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Procaps is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Procaps Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procaps Group SA 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 Procaps Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procaps Group SA has no effect on the direction of Hyundai i.e., Hyundai and Procaps Group go up and down completely randomly.
Pair Corralation between Hyundai and Procaps Group
Assuming the 90 days horizon Hyundai Motor Co is expected to under-perform the Procaps Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hyundai Motor Co is 18.32 times less risky than Procaps Group. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Procaps Group SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Procaps Group SA on August 27, 2024 and sell it today you would lose (62.00) from holding Procaps Group SA or give up 32.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor Co vs. Procaps Group SA
Performance |
| Timeline |
| Hyundai Motor |
| Procaps Group SA |
Hyundai and Procaps Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Procaps Group
The main advantage of trading using opposite Hyundai and Procaps Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Procaps Group 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 Procaps Group will offset losses from the drop in Procaps Group's long position.| Hyundai vs. Isuzu Motors | Hyundai vs. Renault SA | Hyundai vs. Toyota Motor Corp | Hyundai vs. Porsche Automobile Holding |
| Procaps Group vs. Phibro Animal Health | Procaps Group vs. Delta 9 Cannabis | Procaps Group vs. City View Green | Procaps Group vs. Benchmark Botanics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |