Correlation Between HYUNDAI FEED and Neo Cremar

Can any of the company-specific risk be diversified away by investing in both HYUNDAI FEED and Neo Cremar 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 FEED and Neo Cremar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HYUNDAI FEED and Neo Cremar Co, you can compare the effects of market volatilities on HYUNDAI FEED and Neo Cremar 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 FEED with a short position of Neo Cremar. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYUNDAI FEED and Neo Cremar.

Diversification Opportunities for HYUNDAI FEED and Neo Cremar

0.0

Correlation Coefficient

HYUNDAI FEED  Neo Cremar

Pay attention - limited upside

The 3 months correlation between HYUNDAI and Neo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HYUNDAI FEED and Neo Cremar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Cremar and HYUNDAI FEED 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 FEED are associated (or correlated) with Neo Cremar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Cremar has no effect on the direction of HYUNDAI FEED i.e., HYUNDAI FEED and Neo Cremar go up and down completely randomly.

Pair Corralation between HYUNDAI FEED and Neo Cremar

If you would invest  548,000  in Neo Cremar Co on December 30, 2024 and sell it today you would earn a total of  179,000  from holding Neo Cremar Co or generate 32.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

HYUNDAI FEED  vs.  Neo Cremar Co

HYUNDAI FEED

Risk-Adjusted Performance

Very Weak

Over the last 90 days HYUNDAI FEED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HYUNDAI FEED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Neo Cremar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neo Cremar Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Neo Cremar sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HYUNDAI FEED and Neo Cremar

The main advantage of trading using opposite HYUNDAI FEED and Neo Cremar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYUNDAI FEED position performs unexpectedly, Neo Cremar 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 Neo Cremar will offset losses from the drop in Neo Cremar's long position.

The idea behind HYUNDAI FEED and Neo Cremar Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.