Correlation Between Hyundai and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Hyundai and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Hyundai and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and PKSHA TECHNOLOGY.
Diversification Opportunities for Hyundai and PKSHA TECHNOLOGY
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyundai and PKSHA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 are associated (or correlated) with PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Hyundai i.e., Hyundai and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Hyundai and PKSHA TECHNOLOGY
Assuming the 90 days horizon Hyundai is expected to generate 1.08 times less return on investment than PKSHA TECHNOLOGY. But when comparing it to its historical volatility, Hyundai Motor is 1.67 times less risky than PKSHA TECHNOLOGY. It trades about 0.06 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,970 in PKSHA TECHNOLOGY INC on September 2, 2024 and sell it today you would earn a total of 630.00 from holding PKSHA TECHNOLOGY INC or generate 31.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Hyundai Motor |
| PKSHA TECHNOLOGY INC |
Hyundai and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and PKSHA TECHNOLOGY
The main advantage of trading using opposite Hyundai and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Hyundai vs. NEWELL RUBBERMAID | Hyundai vs. Materialise NV | Hyundai vs. Martin Marietta Materials | Hyundai vs. APPLIED MATERIALS |
| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. NMI Holdings | PKSHA TECHNOLOGY vs. Origin Agritech |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |