Correlation Between Hyundai and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Hyundai and PLAYMATES TOYS 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 PLAYMATES TOYS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and PLAYMATES TOYS, you can compare the effects of market volatilities on Hyundai and PLAYMATES TOYS 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 PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and PLAYMATES TOYS.
Diversification Opportunities for Hyundai and PLAYMATES TOYS
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and PLAYMATES is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS 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 PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Hyundai i.e., Hyundai and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Hyundai and PLAYMATES TOYS
Assuming the 90 days trading horizon Hyundai Motor is expected to generate 0.8 times more return on investment than PLAYMATES TOYS. However, Hyundai Motor is 1.25 times less risky than PLAYMATES TOYS. It trades about 0.0 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about -0.06 per unit of risk. If you would invest 5,080 in Hyundai Motor on September 13, 2024 and sell it today you would lose (20.00) from holding Hyundai Motor or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor vs. PLAYMATES TOYS
Performance |
| Timeline |
| Hyundai Motor |
| PLAYMATES TOYS |
Hyundai and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and PLAYMATES TOYS
The main advantage of trading using opposite Hyundai and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| Hyundai vs. LION ONE METALS | Hyundai vs. Hollywood Bowl Group | Hyundai vs. Universal Entertainment | Hyundai vs. Perseus Mining Limited |
| PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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