Correlation Between Hyundai and Keyera Corp
Can any of the company-specific risk be diversified away by investing in both Hyundai and Keyera Corp 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 Keyera Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Keyera Corp, you can compare the effects of market volatilities on Hyundai and Keyera Corp 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 Keyera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Keyera Corp.
Diversification Opportunities for Hyundai and Keyera Corp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyundai and Keyera is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp 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 Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of Hyundai i.e., Hyundai and Keyera Corp go up and down completely randomly.
Pair Corralation between Hyundai and Keyera Corp
Assuming the 90 days horizon Hyundai is expected to generate 1.03 times less return on investment than Keyera Corp. In addition to that, Hyundai is 1.36 times more volatile than Keyera Corp. It trades about 0.06 of its total potential returns per unit of risk. Keyera Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,903 in Keyera Corp on August 27, 2024 and sell it today you would earn a total of 1,249 from holding Keyera Corp or generate 65.63% 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. Keyera Corp
Performance |
| Timeline |
| Hyundai Motor |
| Keyera Corp |
Hyundai and Keyera Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Keyera Corp
The main advantage of trading using opposite Hyundai and Keyera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Keyera Corp 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 Keyera Corp will offset losses from the drop in Keyera Corp's long position.| Hyundai vs. Superior Plus Corp | Hyundai vs. NMI Holdings | Hyundai vs. Origin Agritech | Hyundai vs. SIVERS SEMICONDUCTORS AB |
| Keyera Corp vs. Charter Communications | Keyera Corp vs. HEMISPHERE EGY | Keyera Corp vs. KRISPY KREME DL 01 | Keyera Corp vs. FEMALE HEALTH |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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