Correlation Between Hyundai and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Hyundai and Vienna Insurance 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 Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Vienna Insurance Group, you can compare the effects of market volatilities on Hyundai and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Vienna Insurance.
Diversification Opportunities for Hyundai and Vienna Insurance
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Vienna is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Hyundai i.e., Hyundai and Vienna Insurance go up and down completely randomly.
Pair Corralation between Hyundai and Vienna Insurance
Assuming the 90 days trading horizon Hyundai Motor is expected to under-perform the Vienna Insurance. In addition to that, Hyundai is 2.45 times more volatile than Vienna Insurance Group. It trades about -0.14 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about -0.06 per unit of volatility. If you would invest 2,988 in Vienna Insurance Group on August 26, 2024 and sell it today you would lose (85.00) from holding Vienna Insurance Group or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor vs. Vienna Insurance Group
Performance |
| Timeline |
| Hyundai Motor |
| Vienna Insurance |
Hyundai and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Vienna Insurance
The main advantage of trading using opposite Hyundai and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Hyundai vs. MG Plc | Hyundai vs. Admiral Group PLC | Hyundai vs. Anglo American PLC | Hyundai vs. Vodafone Group PLC |
| Vienna Insurance vs. Samsung Electronics Co | Vienna Insurance vs. Samsung Electronics Co | Vienna Insurance vs. Hyundai Motor | Vienna Insurance 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |