Correlation Between Tang Eng and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Tang Eng 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 Tang Eng and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tang Eng Iron and Hunya Foods Co, you can compare the effects of market volatilities on Tang Eng 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 Tang Eng with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tang Eng and Hunya Foods.
Diversification Opportunities for Tang Eng and Hunya Foods
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tang and Hunya is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tang Eng Iron and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Tang Eng 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 Tang Eng Iron 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 Tang Eng i.e., Tang Eng and Hunya Foods go up and down completely randomly.
Pair Corralation between Tang Eng and Hunya Foods
Assuming the 90 days trading horizon Tang Eng Iron is expected to under-perform the Hunya Foods. But the stock apears to be less risky and, when comparing its historical volatility, Tang Eng Iron is 1.02 times less risky than Hunya Foods. The stock trades about -0.02 of its potential returns per unit of risk. The Hunya Foods Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,395 in Hunya Foods Co on September 14, 2024 and sell it today you would lose (70.00) from holding Hunya Foods Co or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tang Eng Iron vs. Hunya Foods Co
Performance |
| Timeline |
| Tang Eng Iron |
| Hunya Foods |
Tang Eng and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tang Eng and Hunya Foods
The main advantage of trading using opposite Tang Eng and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tang Eng 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.| Tang Eng vs. SS Healthcare Holding | Tang Eng vs. Dadi Early Childhood Education | Tang Eng vs. Weltrend Semiconductor | Tang Eng vs. Mospec Semiconductor Corp |
| Hunya Foods vs. Standard Foods Corp | Hunya Foods vs. Uni President Enterprises Corp | Hunya Foods vs. Great Wall Enterprise | Hunya Foods vs. Ruentex Development 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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