Correlation Between Hunya Foods and Roo Hsing
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and Roo Hsing 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 Roo Hsing 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 Roo Hsing Co, you can compare the effects of market volatilities on Hunya Foods and Roo Hsing 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 Roo Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and Roo Hsing.
Diversification Opportunities for Hunya Foods and Roo Hsing
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunya and Roo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and Roo Hsing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roo Hsing 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 Roo Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roo Hsing has no effect on the direction of Hunya Foods i.e., Hunya Foods and Roo Hsing go up and down completely randomly.
Pair Corralation between Hunya Foods and Roo Hsing
Assuming the 90 days trading horizon Hunya Foods Co is expected to generate 0.51 times more return on investment than Roo Hsing. However, Hunya Foods Co is 1.96 times less risky than Roo Hsing. It trades about -0.06 of its potential returns per unit of risk. Roo Hsing Co is currently generating about -0.06 per unit of risk. If you would invest 2,385 in Hunya Foods Co on September 3, 2024 and sell it today you would lose (65.00) from holding Hunya Foods Co or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. Roo Hsing Co
Performance |
| Timeline |
| Hunya Foods |
| Roo Hsing |
Hunya Foods and Roo Hsing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and Roo Hsing
The main advantage of trading using opposite Hunya Foods and Roo Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, Roo Hsing 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 Roo Hsing will offset losses from the drop in Roo Hsing's long position.| Hunya Foods vs. Standard Foods Corp | Hunya Foods vs. TTET Union Corp | Hunya Foods vs. Uni President Enterprises Corp | Hunya Foods vs. Charoen Pokphand Enterprise |
| Roo Hsing vs. Excellence Optoelectronic | Roo Hsing vs. Bright Led Electronics | Roo Hsing vs. C Media Electronics | Roo Hsing vs. Hunya Foods 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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