Correlation Between Hunya Foods and Central Reinsurance
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and Central Reinsurance 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 Hunya Foods and Central Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunya Foods Co and Central Reinsurance Corp, you can compare the effects of market volatilities on Hunya Foods and Central Reinsurance 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 Hunya Foods with a short position of Central Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and Central Reinsurance.
Diversification Opportunities for Hunya Foods and Central Reinsurance
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunya and Central is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and Central Reinsurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Reinsurance Corp and Hunya Foods 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 Hunya Foods Co are associated (or correlated) with Central Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Reinsurance Corp has no effect on the direction of Hunya Foods i.e., Hunya Foods and Central Reinsurance go up and down completely randomly.
Pair Corralation between Hunya Foods and Central Reinsurance
Assuming the 90 days trading horizon Hunya Foods is expected to generate 2.55 times less return on investment than Central Reinsurance. In addition to that, Hunya Foods is 1.05 times more volatile than Central Reinsurance Corp. It trades about 0.01 of its total potential returns per unit of risk. Central Reinsurance Corp is currently generating about 0.03 per unit of volatility. If you would invest 2,355 in Central Reinsurance Corp on August 26, 2024 and sell it today you would earn a total of 225.00 from holding Central Reinsurance Corp or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. Central Reinsurance Corp
Performance |
| Timeline |
| Hunya Foods |
| Central Reinsurance Corp |
Hunya Foods and Central Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and Central Reinsurance
The main advantage of trading using opposite Hunya Foods and Central Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, Central Reinsurance 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 Central Reinsurance will offset losses from the drop in Central Reinsurance's long position.| Hunya Foods vs. Lian Hwa Foods | Hunya Foods vs. Uni President Enterprises Corp | Hunya Foods vs. Taiwan Cement Corp | Hunya Foods vs. Ruentex Development Co |
| Central Reinsurance vs. Ma Kuang Healthcare | Central Reinsurance vs. U Ming Marine Transport | Central Reinsurance vs. Chi Hua Fitness | Central Reinsurance vs. First Insurance 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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