Correlation Between Hyundai and Andrews Sykes
Can any of the company-specific risk be diversified away by investing in both Hyundai and Andrews Sykes 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 Andrews Sykes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and Andrews Sykes Group, you can compare the effects of market volatilities on Hyundai and Andrews Sykes 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 Andrews Sykes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Andrews Sykes.
Diversification Opportunities for Hyundai and Andrews Sykes
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyundai and Andrews is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and Andrews Sykes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andrews Sykes Group 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 Andrews Sykes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andrews Sykes Group has no effect on the direction of Hyundai i.e., Hyundai and Andrews Sykes go up and down completely randomly.
Pair Corralation between Hyundai and Andrews Sykes
Assuming the 90 days trading horizon Hyundai Motor is expected to under-perform the Andrews Sykes. In addition to that, Hyundai is 2.03 times more volatile than Andrews Sykes Group. It trades about -0.07 of its total potential returns per unit of risk. Andrews Sykes Group is currently generating about -0.08 per unit of volatility. If you would invest 53,000 in Andrews Sykes Group on September 3, 2024 and sell it today you would lose (1,250) from holding Andrews Sykes Group or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyundai Motor vs. Andrews Sykes Group
Performance |
| Timeline |
| Hyundai Motor |
| Andrews Sykes Group |
Hyundai and Andrews Sykes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and Andrews Sykes
The main advantage of trading using opposite Hyundai and Andrews Sykes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, Andrews Sykes 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 Andrews Sykes will offset losses from the drop in Andrews Sykes' long position.| Hyundai vs. Bank of Ireland | Hyundai vs. Sparebank 1 SR | Hyundai vs. Elmos Semiconductor SE | Hyundai vs. Cincinnati Financial Corp |
| Andrews Sykes vs. Cairo Communication SpA | Andrews Sykes vs. CleanTech Lithium plc | Andrews Sykes vs. Naked Wines plc | Andrews Sykes vs. Air Products Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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