Correlation Between Hyundai and Argen X
Can any of the company-specific risk be diversified away by investing in both Hyundai and Argen X 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 Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Argen X, you can compare the effects of market volatilities on Hyundai and Argen X 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 Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Argen X.
Diversification Opportunities for Hyundai and Argen X
Pay attention - limited upside
The 3 months correlation between Hyundai and Argen is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X 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 Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Hyundai i.e., Hyundai and Argen X go up and down completely randomly.
Pair Corralation between Hyundai and Argen X
Assuming the 90 days trading horizon Hyundai Motor is expected to generate 0.83 times more return on investment than Argen X. However, Hyundai Motor is 1.2 times less risky than Argen X. It trades about 0.07 of its potential returns per unit of risk. Argen X is currently generating about 0.05 per unit of risk. If you would invest 2,621 in Hyundai Motor on September 20, 2024 and sell it today you would earn a total of 2,659 from holding Hyundai Motor or generate 101.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hyundai Motor vs. Argen X
Performance |
| Timeline |
| Hyundai Motor |
| Argen X |
Hyundai and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Argen X
The main advantage of trading using opposite Hyundai and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| Hyundai vs. Gear4music Plc | Hyundai vs. Thor Mining PLC | Hyundai vs. Auto Trader Group | Hyundai vs. Universal Music Group |
| Argen X vs. Samsung Electronics Co | Argen X vs. Samsung Electronics Co | Argen X vs. Hyundai Motor | Argen X vs. Reliance Industries Ltd |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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