Correlation Between Hyundai and LifeSafe Holdings
Can any of the company-specific risk be diversified away by investing in both Hyundai and LifeSafe Holdings 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 LifeSafe Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Motor and LifeSafe Holdings PLC, you can compare the effects of market volatilities on Hyundai and LifeSafe Holdings 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 LifeSafe Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and LifeSafe Holdings.
Diversification Opportunities for Hyundai and LifeSafe Holdings
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyundai and LifeSafe is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor and LifeSafe Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSafe Holdings PLC 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 LifeSafe Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSafe Holdings PLC has no effect on the direction of Hyundai i.e., Hyundai and LifeSafe Holdings go up and down completely randomly.
Pair Corralation between Hyundai and LifeSafe Holdings
Assuming the 90 days trading horizon Hyundai Motor is expected to generate 1.09 times more return on investment than LifeSafe Holdings. However, Hyundai is 1.09 times more volatile than LifeSafe Holdings PLC. It trades about -0.09 of its potential returns per unit of risk. LifeSafe Holdings PLC is currently generating about -0.28 per unit of risk. If you would invest 5,500 in Hyundai Motor on September 12, 2024 and sell it today you would lose (260.00) from holding Hyundai Motor or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyundai Motor vs. LifeSafe Holdings PLC
Performance |
| Timeline |
| Hyundai Motor |
| LifeSafe Holdings PLC |
Hyundai and LifeSafe Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai and LifeSafe Holdings
The main advantage of trading using opposite Hyundai and LifeSafe Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai position performs unexpectedly, LifeSafe Holdings 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 LifeSafe Holdings will offset losses from the drop in LifeSafe Holdings' long position.| Hyundai vs. Fonix Mobile plc | Hyundai vs. Worldwide Healthcare Trust | Hyundai vs. Omega Healthcare Investors | Hyundai vs. PureTech Health plc |
| LifeSafe Holdings vs. Impax Environmental Markets | LifeSafe Holdings vs. Compal Electronics GDR | LifeSafe Holdings vs. Gaming Realms plc | LifeSafe Holdings vs. Verizon Communications |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |