Correlation Between Chia Her and Hey Song
Can any of the company-specific risk be diversified away by investing in both Chia Her and Hey Song 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 Chia Her and Hey Song into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia Her Industrial and Hey Song Corp, you can compare the effects of market volatilities on Chia Her and Hey Song 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 Chia Her with a short position of Hey Song. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia Her and Hey Song.
Diversification Opportunities for Chia Her and Hey Song
Very good diversification
The 3 months correlation between Chia and Hey is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chia Her Industrial and Hey Song Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hey Song Corp and Chia Her 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 Chia Her Industrial are associated (or correlated) with Hey Song. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hey Song Corp has no effect on the direction of Chia Her i.e., Chia Her and Hey Song go up and down completely randomly.
Pair Corralation between Chia Her and Hey Song
Assuming the 90 days trading horizon Chia Her Industrial is expected to generate 4.35 times more return on investment than Hey Song. However, Chia Her is 4.35 times more volatile than Hey Song Corp. It trades about 0.03 of its potential returns per unit of risk. Hey Song Corp is currently generating about 0.07 per unit of risk. If you would invest 1,772 in Chia Her Industrial on August 30, 2024 and sell it today you would earn a total of 583.00 from holding Chia Her Industrial or generate 32.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia Her Industrial vs. Hey Song Corp
Performance |
| Timeline |
| Chia Her Industrial |
| Hey Song Corp |
Chia Her and Hey Song Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia Her and Hey Song
The main advantage of trading using opposite Chia Her and Hey Song positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia Her position performs unexpectedly, Hey Song 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 Hey Song will offset losses from the drop in Hey Song's long position.The idea behind Chia Her Industrial and Hey Song Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |