Correlation Between AFLAC and Hong Kong
Can any of the company-specific risk be diversified away by investing in both AFLAC and Hong Kong 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 AFLAC and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFLAC Inc and Hong Kong Land, you can compare the effects of market volatilities on AFLAC and Hong Kong 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 AFLAC with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFLAC and Hong Kong.
Diversification Opportunities for AFLAC and Hong Kong
Pay attention - limited upside
The 3 months correlation between AFLAC and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFLAC Inc and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land and AFLAC 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 AFLAC Inc are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of AFLAC i.e., AFLAC and Hong Kong go up and down completely randomly.
Pair Corralation between AFLAC and Hong Kong
If you would invest 741.00 in Hong Kong Land on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Hong Kong Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFLAC Inc vs. Hong Kong Land
Performance |
| Timeline |
| AFLAC Inc |
| Hong Kong Land |
AFLAC and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFLAC and Hong Kong
The main advantage of trading using opposite AFLAC and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFLAC position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| AFLAC vs. Liberty Media Corp | AFLAC vs. Check Point Software | AFLAC vs. MediaZest plc | AFLAC vs. Centaur Media |
| Hong Kong vs. Fevertree Drinks Plc | Hong Kong vs. Park Hotels Resorts | Hong Kong vs. Litigation Capital Management | Hong Kong vs. Tatton Asset Management |
Check out your portfolio center.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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets |