Correlation Between Hyundai and GB Group
Can any of the company-specific risk be diversified away by investing in both Hyundai and GB 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 GB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and GB Group plc, you can compare the effects of market volatilities on Hyundai and GB 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 GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and GB Group.
Diversification Opportunities for Hyundai and GB Group
Very good diversification
The 3 months correlation between Hyundai and 0GB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and GB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GB Group plc 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 GB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GB Group plc has no effect on the direction of Hyundai i.e., Hyundai and GB Group go up and down completely randomly.
Pair Corralation between Hyundai and GB Group
If you would invest 4,840 in Hyundai Motor on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Hyundai Motor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Hyundai Motor vs. GB Group plc
Performance |
| Timeline |
| Hyundai Motor |
| GB Group plc |
Hyundai and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and GB Group
The main advantage of trading using opposite Hyundai and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, GB 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 GB Group will offset losses from the drop in GB Group's long position.The idea behind Hyundai Motor and GB Group plc 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.| GB Group vs. SIDETRADE EO 1 | GB Group vs. Scandinavian Tobacco Group | GB Group vs. Fast Retailing Co | GB Group vs. CVW CLEANTECH INC |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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