Correlation Between Hyundai and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Hyundai and Uber Technologies 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 Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Uber Technologies, you can compare the effects of market volatilities on Hyundai and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Uber Technologies.
Diversification Opportunities for Hyundai and Uber Technologies
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and Uber is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Hyundai i.e., Hyundai and Uber Technologies go up and down completely randomly.
Pair Corralation between Hyundai and Uber Technologies
Assuming the 90 days trading horizon Hyundai Motor is expected to generate 1.76 times more return on investment than Uber Technologies. However, Hyundai is 1.76 times more volatile than Uber Technologies. It trades about 0.08 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.05 per unit of risk. If you would invest 3,684 in Hyundai Motor on September 3, 2024 and sell it today you would earn a total of 1,936 from holding Hyundai Motor or generate 52.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Hyundai Motor vs. Uber Technologies
Performance |
| Timeline |
| Hyundai Motor |
| Uber Technologies |
Hyundai and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Uber Technologies
The main advantage of trading using opposite Hyundai and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Hyundai vs. Bank of Ireland | Hyundai vs. Sparebank 1 SR | Hyundai vs. Elmos Semiconductor SE | Hyundai vs. Cincinnati Financial Corp |
| Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Hyundai Motor | Uber Technologies vs. Toyota Motor Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |