Correlation Between Hyundai Mobis and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Hyundai Mobis and Duksan Hi 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 Mobis and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Mobis and Duksan Hi Metal, you can compare the effects of market volatilities on Hyundai Mobis and Duksan Hi 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 Mobis with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Mobis and Duksan Hi.
Diversification Opportunities for Hyundai Mobis and Duksan Hi
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyundai and Duksan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Mobis and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Hyundai Mobis 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 Mobis are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Hyundai Mobis i.e., Hyundai Mobis and Duksan Hi go up and down completely randomly.
Pair Corralation between Hyundai Mobis and Duksan Hi
Assuming the 90 days trading horizon Hyundai Mobis is expected to generate 0.71 times more return on investment than Duksan Hi. However, Hyundai Mobis is 1.4 times less risky than Duksan Hi. It trades about 0.11 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.06 per unit of risk. If you would invest 20,850,000 in Hyundai Mobis on December 10, 2024 and sell it today you would earn a total of 5,000,000 from holding Hyundai Mobis or generate 23.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hyundai Mobis vs. Duksan Hi Metal
Performance |
Timeline |
Hyundai Mobis |
Duksan Hi Metal |
Hyundai Mobis and Duksan Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hyundai Mobis and Duksan Hi
The main advantage of trading using opposite Hyundai Mobis and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Mobis position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.Hyundai Mobis vs. KTB Investment Securities | Hyundai Mobis vs. Nice Information Telecommunication | Hyundai Mobis vs. Aju IB Investment | Hyundai Mobis vs. DB Financial Investment |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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