Correlation Between Hey Song and De Licacy
Can any of the company-specific risk be diversified away by investing in both Hey Song and De Licacy 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 Hey Song and De Licacy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hey Song Corp and De Licacy Industrial, you can compare the effects of market volatilities on Hey Song and De Licacy 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 Hey Song with a short position of De Licacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hey Song and De Licacy.
Diversification Opportunities for Hey Song and De Licacy
Very good diversification
The 3 months correlation between Hey and 1464 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hey Song Corp and De Licacy Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Licacy Industrial and Hey Song 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 Hey Song Corp are associated (or correlated) with De Licacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Licacy Industrial has no effect on the direction of Hey Song i.e., Hey Song and De Licacy go up and down completely randomly.
Pair Corralation between Hey Song and De Licacy
Assuming the 90 days trading horizon Hey Song Corp is expected to generate 0.15 times more return on investment than De Licacy. However, Hey Song Corp is 6.61 times less risky than De Licacy. It trades about 0.0 of its potential returns per unit of risk. De Licacy Industrial is currently generating about -0.09 per unit of risk. If you would invest 4,155 in Hey Song Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Hey Song Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hey Song Corp vs. De Licacy Industrial
Performance |
| Timeline |
| Hey Song Corp |
| De Licacy Industrial |
Hey Song and De Licacy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hey Song and De Licacy
The main advantage of trading using opposite Hey Song and De Licacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hey Song position performs unexpectedly, De Licacy 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 De Licacy will offset losses from the drop in De Licacy's long position.| Hey Song vs. Great Wall Enterprise | Hey Song vs. Uni President Enterprises Corp | Hey Song vs. Wei Chuan Foods | Hey Song vs. Taisun Enterprise Co |
| De Licacy vs. Tainan Enterprises Co | De Licacy vs. Nien Hsing Textile | De Licacy vs. Wisher Industrial Co | De Licacy vs. Tex Ray Industrial Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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