Correlation Between Hyundai and Repligen

Can any of the company-specific risk be diversified away by investing in both Hyundai and Repligen 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 Repligen 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 Repligen, you can compare the effects of market volatilities on Hyundai and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai and Repligen.

Diversification Opportunities for Hyundai and Repligen

-0.41

Correlation Coefficient

Hyundai  Repligen

Very good diversification

The 3 months correlation between Hyundai and Repligen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Motor Co and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Hyundai i.e., Hyundai and Repligen go up and down completely randomly.

Pair Corralation between Hyundai and Repligen

Assuming the 90 days horizon Hyundai Motor Co is expected to generate 1.25 times more return on investment than Repligen. However, Hyundai is 1.25 times more volatile than Repligen. It trades about 0.02 of its potential returns per unit of risk. Repligen is currently generating about -0.05 per unit of risk. If you would invest  5,058  in Hyundai Motor Co on May 6, 2025 and sell it today you would earn a total of  42.00  from holding Hyundai Motor Co or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Hyundai Motor Co  vs.  Repligen

Hyundai Motor

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyundai Motor Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Hyundai is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Repligen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repligen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Hyundai and Repligen

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

The idea behind Hyundai Motor Co and Repligen 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.