Correlation Between Hunya Foods and X Legend
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and X Legend 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 X Legend 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 X Legend Entertainment Co, you can compare the effects of market volatilities on Hunya Foods and X Legend 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 X Legend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and X Legend.
Diversification Opportunities for Hunya Foods and X Legend
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunya and 4994 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and X Legend Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Legend Entertainment 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 X Legend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Legend Entertainment has no effect on the direction of Hunya Foods i.e., Hunya Foods and X Legend go up and down completely randomly.
Pair Corralation between Hunya Foods and X Legend
Assuming the 90 days trading horizon Hunya Foods Co is expected to generate 0.54 times more return on investment than X Legend. However, Hunya Foods Co is 1.86 times less risky than X Legend. It trades about -0.03 of its potential returns per unit of risk. X Legend Entertainment Co is currently generating about -0.08 per unit of risk. If you would invest 2,410 in Hunya Foods Co on August 30, 2024 and sell it today you would lose (95.00) from holding Hunya Foods Co or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. X Legend Entertainment Co
Performance |
| Timeline |
| Hunya Foods |
| X Legend Entertainment |
Hunya Foods and X Legend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and X Legend
The main advantage of trading using opposite Hunya Foods and X Legend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, X Legend 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 X Legend will offset losses from the drop in X Legend's long position.| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial Co |
| X Legend vs. Chunghwa Telecom Co | X Legend vs. CTBC Financial Holding | X Legend vs. Fubon Financial Holding | X Legend vs. President Chain Store |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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