Correlation Between Stellar and Hyundai CF

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

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

Diversification Opportunities for Stellar and Hyundai CF

-0.6

Correlation Coefficient

Stellar  Hyundai CF

Excellent diversification

The 3 months correlation between Stellar and Hyundai is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Hyundai CF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai CF and Stellar 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 Stellar are associated (or correlated) with Hyundai CF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai CF has no effect on the direction of Stellar i.e., Stellar and Hyundai CF go up and down completely randomly.

Pair Corralation between Stellar and Hyundai CF

Assuming the 90 days trading horizon Stellar is expected to under-perform the Hyundai CF. In addition to that, Stellar is 9.62 times more volatile than Hyundai CF. It trades about -0.05 of its total potential returns per unit of risk. Hyundai CF is currently generating about 0.05 per unit of volatility. If you would invest  1,021,000  in Hyundai CF on December 24, 2024 and sell it today you would earn a total of  19,000  from holding Hyundai CF or generate 1.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	89.06%
Values	Daily Returns

Stellar  vs.  Hyundai CF

Stellar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Stellar shareholders.

Hyundai CF

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hyundai CF are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hyundai CF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stellar and Hyundai CF

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

The idea behind Stellar and Hyundai CF 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.