Correlation Between Hota Industrial and Feng Tay
Can any of the company-specific risk be diversified away by investing in both Hota Industrial and Feng Tay 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 Hota Industrial and Feng Tay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hota Industrial Mfg and Feng Tay Enterprises, you can compare the effects of market volatilities on Hota Industrial and Feng Tay 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 Hota Industrial with a short position of Feng Tay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hota Industrial and Feng Tay.
Diversification Opportunities for Hota Industrial and Feng Tay
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hota and Feng is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hota Industrial Mfg and Feng Tay Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Tay Enterprises and Hota Industrial 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 Hota Industrial Mfg are associated (or correlated) with Feng Tay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Tay Enterprises has no effect on the direction of Hota Industrial i.e., Hota Industrial and Feng Tay go up and down completely randomly.
Pair Corralation between Hota Industrial and Feng Tay
Assuming the 90 days trading horizon Hota Industrial Mfg is expected to generate 1.31 times more return on investment than Feng Tay. However, Hota Industrial is 1.31 times more volatile than Feng Tay Enterprises. It trades about 0.0 of its potential returns per unit of risk. Feng Tay Enterprises is currently generating about -0.04 per unit of risk. If you would invest 6,770 in Hota Industrial Mfg on September 12, 2024 and sell it today you would lose (790.00) from holding Hota Industrial Mfg or give up 11.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Hota Industrial Mfg vs. Feng Tay Enterprises
Performance |
| Timeline |
| Hota Industrial Mfg |
| Feng Tay Enterprises |
Hota Industrial and Feng Tay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hota Industrial and Feng Tay
The main advantage of trading using opposite Hota Industrial and Feng Tay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hota Industrial position performs unexpectedly, Feng Tay 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 Feng Tay will offset losses from the drop in Feng Tay's long position.| Hota Industrial vs. Feng Tay Enterprises | Hota Industrial vs. Ruentex Development Co | Hota Industrial vs. WiseChip Semiconductor | Hota Industrial vs. Novatek Microelectronics Corp |
| Feng Tay vs. Pou Chen Corp | Feng Tay vs. Eclat Textile Co | Feng Tay vs. Hotai Motor Co | Feng Tay vs. Giant Manufacturing 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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