Correlation Between Kaulin Mfg and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Kaulin Mfg and Hunya Foods 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 Kaulin Mfg and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaulin Mfg and Hunya Foods Co, you can compare the effects of market volatilities on Kaulin Mfg and Hunya Foods 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 Kaulin Mfg with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaulin Mfg and Hunya Foods.
Diversification Opportunities for Kaulin Mfg and Hunya Foods
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaulin and Hunya is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kaulin Mfg and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Kaulin Mfg 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 Kaulin Mfg are associated (or correlated) with Hunya Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunya Foods has no effect on the direction of Kaulin Mfg i.e., Kaulin Mfg and Hunya Foods go up and down completely randomly.
Pair Corralation between Kaulin Mfg and Hunya Foods
Assuming the 90 days trading horizon Kaulin Mfg is expected to generate 6.4 times more return on investment than Hunya Foods. However, Kaulin Mfg is 6.4 times more volatile than Hunya Foods Co. It trades about 0.17 of its potential returns per unit of risk. Hunya Foods Co is currently generating about -0.04 per unit of risk. If you would invest 1,440 in Kaulin Mfg on August 30, 2024 and sell it today you would earn a total of 230.00 from holding Kaulin Mfg or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaulin Mfg vs. Hunya Foods Co
Performance |
| Timeline |
| Kaulin Mfg |
| Hunya Foods |
Kaulin Mfg and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaulin Mfg and Hunya Foods
The main advantage of trading using opposite Kaulin Mfg and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaulin Mfg position performs unexpectedly, Hunya Foods 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 Hunya Foods will offset losses from the drop in Hunya Foods' long position.| Kaulin Mfg vs. Tainan Enterprises Co | Kaulin Mfg vs. Nien Hsing Textile | Kaulin Mfg vs. De Licacy Industrial | Kaulin Mfg vs. Kwong Fong Industries |
| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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