Correlation Between Hyundai and CATCo Reinsurance
Can any of the company-specific risk be diversified away by investing in both Hyundai and CATCo Reinsurance 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 CATCo Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and CATCo Reinsurance Opportunities, you can compare the effects of market volatilities on Hyundai and CATCo Reinsurance 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 CATCo Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and CATCo Reinsurance.
Diversification Opportunities for Hyundai and CATCo Reinsurance
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyundai and CATCo is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and CATCo Reinsurance Opportunitie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATCo Reinsurance 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 CATCo Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATCo Reinsurance has no effect on the direction of Hyundai i.e., Hyundai and CATCo Reinsurance go up and down completely randomly.
Pair Corralation between Hyundai and CATCo Reinsurance
Assuming the 90 days trading horizon Hyundai is expected to generate 1.19 times less return on investment than CATCo Reinsurance. But when comparing it to its historical volatility, Hyundai Motor is 1.27 times less risky than CATCo Reinsurance. It trades about 0.07 of its potential returns per unit of risk. CATCo Reinsurance Opportunities is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,400 in CATCo Reinsurance Opportunities on August 26, 2024 and sell it today you would earn a total of 1,350 from holding CATCo Reinsurance Opportunities or generate 56.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hyundai Motor vs. CATCo Reinsurance Opportunitie
Performance |
| Timeline |
| Hyundai Motor |
| CATCo Reinsurance |
Hyundai and CATCo Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and CATCo Reinsurance
The main advantage of trading using opposite Hyundai and CATCo Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, CATCo Reinsurance 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 CATCo Reinsurance will offset losses from the drop in CATCo Reinsurance's long position.| Hyundai vs. Vitec Software Group | Hyundai vs. Take Two Interactive Software | Hyundai vs. Planet Fitness Cl | Hyundai vs. Optima Health plc |
| CATCo Reinsurance vs. Samsung Electronics Co | CATCo Reinsurance vs. Samsung Electronics Co | CATCo Reinsurance vs. Hyundai Motor | CATCo Reinsurance 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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