Correlation Between Hunya Foods and Tigerair Taiwan
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and Tigerair Taiwan 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 Tigerair Taiwan 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 Tigerair Taiwan Co, you can compare the effects of market volatilities on Hunya Foods and Tigerair Taiwan 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 Tigerair Taiwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and Tigerair Taiwan.
Diversification Opportunities for Hunya Foods and Tigerair Taiwan
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hunya and Tigerair is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and Tigerair Taiwan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigerair Taiwan 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 Tigerair Taiwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigerair Taiwan has no effect on the direction of Hunya Foods i.e., Hunya Foods and Tigerair Taiwan go up and down completely randomly.
Pair Corralation between Hunya Foods and Tigerair Taiwan
Assuming the 90 days trading horizon Hunya Foods Co is expected to under-perform the Tigerair Taiwan. But the stock apears to be less risky and, when comparing its historical volatility, Hunya Foods Co is 3.51 times less risky than Tigerair Taiwan. The stock trades about -0.01 of its potential returns per unit of risk. The Tigerair Taiwan Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,285 in Tigerair Taiwan Co on September 4, 2024 and sell it today you would earn a total of 4,415 from holding Tigerair Taiwan Co or generate 134.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. Tigerair Taiwan Co
Performance |
| Timeline |
| Hunya Foods |
| Tigerair Taiwan |
Hunya Foods and Tigerair Taiwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and Tigerair Taiwan
The main advantage of trading using opposite Hunya Foods and Tigerair Taiwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, Tigerair Taiwan 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 Tigerair Taiwan will offset losses from the drop in Tigerair Taiwan'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 |
| Tigerair Taiwan vs. Meiloon Industrial Co | Tigerair Taiwan vs. Shiny Chemical Industrial | Tigerair Taiwan vs. Tex Ray Industrial Co | Tigerair Taiwan 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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