Correlation Between Singapore Reinsurance and Hyundai
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance 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 Singapore Reinsurance and Hyundai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Hyundai Motor, you can compare the effects of market volatilities on Singapore Reinsurance 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 Singapore Reinsurance with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Hyundai.
Diversification Opportunities for Singapore Reinsurance and Hyundai
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singapore and Hyundai is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance i.e., Singapore Reinsurance and Hyundai go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Hyundai
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.12 times more return on investment than Hyundai. However, Singapore Reinsurance is 1.12 times more volatile than Hyundai Motor. It trades about 0.18 of its potential returns per unit of risk. Hyundai Motor is currently generating about -0.02 per unit of risk. If you would invest 3,140 in Singapore Reinsurance on September 2, 2024 and sell it today you would earn a total of 340.00 from holding Singapore Reinsurance or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. Hyundai Motor
Performance |
| Timeline |
| Singapore Reinsurance |
| Hyundai Motor |
Singapore Reinsurance and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Hyundai
The main advantage of trading using opposite Singapore Reinsurance and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance 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.| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
| Hyundai vs. NEWELL RUBBERMAID | Hyundai vs. Materialise NV | Hyundai vs. Martin Marietta Materials | Hyundai vs. APPLIED MATERIALS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |