Correlation Between ADRIATIC METALS and Hyundai

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

By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and Hyundai Motor, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and Hyundai.

Diversification Opportunities for ADRIATIC METALS and Hyundai

0.0

Correlation Coefficient

ADRIATIC METALS  Hyundai

Pay attention - limited upside

The 3 months correlation between ADRIATIC and Hyundai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and Hyundai go up and down completely randomly.

Pair Corralation between ADRIATIC METALS and Hyundai

If you would invest  230.00  in ADRIATIC METALS LS 013355 on December 24, 2024 and sell it today you would earn a total of  38.00  from holding ADRIATIC METALS LS 013355 or generate 16.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

ADRIATIC METALS LS 013355  vs.  Hyundai Motor

ADRIATIC METALS LS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ADRIATIC METALS LS 013355 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ADRIATIC METALS reported solid returns over the last few months and may actually be approaching a breakup point.

Hyundai Motor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hyundai Motor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hyundai is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ADRIATIC METALS and Hyundai

The main advantage of trading using opposite ADRIATIC METALS and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.

The idea behind ADRIATIC METALS LS 013355 and Hyundai Motor 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 Transaction History module to view history of all your transactions and understand their impact on performance.