Correlation Between Hyundai and SYN Prop

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

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

Diversification Opportunities for Hyundai and SYN Prop

-0.47

Correlation Coefficient

Hyundai  SYN Prop

Very good diversification

The 3 months correlation between Hyundai and SYN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and SYN prop e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN prop e and Hyundai 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 Motor Co are associated (or correlated) with SYN Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN prop e has no effect on the direction of Hyundai i.e., Hyundai and SYN Prop go up and down completely randomly.

Pair Corralation between Hyundai and SYN Prop

Assuming the 90 days horizon Hyundai is expected to generate 6.05 times less return on investment than SYN Prop. But when comparing it to its historical volatility, Hyundai Motor Co is 3.2 times less risky than SYN Prop. It trades about 0.06 of its potential returns per unit of risk. SYN prop e is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  76.00  in SYN prop e on October 19, 2024 and sell it today you would earn a total of  450.00  from holding SYN prop e or generate 592.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.8%
Values	Daily Returns

Hyundai Motor Co  vs.  SYN prop e

Hyundai Motor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hyundai Motor Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

SYN prop e

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SYN prop e are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, SYN Prop showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hyundai and SYN Prop

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

The idea behind Hyundai Motor Co and SYN prop e 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..