Correlation Between Hyzon Motors and Hyundai
Can any of the company-specific risk be diversified away by investing in both Hyzon Motors and Hyundai 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 Hyzon Motors and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyzon Motors and Hyundai Motor Co, you can compare the effects of market volatilities on Hyzon Motors and Hyundai 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 Hyzon Motors with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyzon Motors and Hyundai.
Diversification Opportunities for Hyzon Motors and Hyundai
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyzon and Hyundai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hyzon Motors and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Hyzon Motors 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 Hyzon Motors are associated (or correlated) with Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Hyzon Motors i.e., Hyzon Motors and Hyundai go up and down completely randomly.
Pair Corralation between Hyzon Motors and Hyundai
Given the investment horizon of 90 days Hyzon Motors is expected to under-perform the Hyundai. In addition to that, Hyzon Motors is 2.75 times more volatile than Hyundai Motor Co. It trades about -0.15 of its total potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.07 per unit of volatility. If you would invest 3,789 in Hyundai Motor Co on September 2, 2024 and sell it today you would earn a total of 1,792 from holding Hyundai Motor Co or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyzon Motors vs. Hyundai Motor Co
Performance |
| Timeline |
| Hyzon Motors |
| Hyundai Motor |
Hyzon Motors and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyzon Motors and Hyundai
The main advantage of trading using opposite Hyzon Motors and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyzon Motors position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Hyzon Motors vs. Mullen Automotive | Hyzon Motors vs. Canoo Inc | Hyzon Motors vs. Faraday Future Intelligent | Hyzon Motors vs. Polestar Automotive Holding |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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