Correlation Between Hung Ching and Sweeten Real
Can any of the company-specific risk be diversified away by investing in both Hung Ching and Sweeten Real 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 Hung Ching and Sweeten Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Ching Development and Sweeten Real Estate, you can compare the effects of market volatilities on Hung Ching and Sweeten Real 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 Hung Ching with a short position of Sweeten Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Ching and Sweeten Real.
Diversification Opportunities for Hung Ching and Sweeten Real
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hung and Sweeten is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hung Ching Development and Sweeten Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweeten Real Estate and Hung Ching 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 Hung Ching Development are associated (or correlated) with Sweeten Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweeten Real Estate has no effect on the direction of Hung Ching i.e., Hung Ching and Sweeten Real go up and down completely randomly.
Pair Corralation between Hung Ching and Sweeten Real
Assuming the 90 days trading horizon Hung Ching Development is expected to generate 1.31 times more return on investment than Sweeten Real. However, Hung Ching is 1.31 times more volatile than Sweeten Real Estate. It trades about 0.06 of its potential returns per unit of risk. Sweeten Real Estate is currently generating about 0.04 per unit of risk. If you would invest 2,405 in Hung Ching Development on August 31, 2024 and sell it today you would earn a total of 1,375 from holding Hung Ching Development or generate 57.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hung Ching Development vs. Sweeten Real Estate
Performance |
| Timeline |
| Hung Ching Development |
| Sweeten Real Estate |
Hung Ching and Sweeten Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Ching and Sweeten Real
The main advantage of trading using opposite Hung Ching and Sweeten Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Ching position performs unexpectedly, Sweeten Real 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 Sweeten Real will offset losses from the drop in Sweeten Real's long position.| Hung Ching vs. Huaku Development Co | Hung Ching vs. Ruentex Development Co | Hung Ching vs. CTCI Corp | Hung Ching vs. Information Technology Total |
| Sweeten Real vs. Chong Hong Construction | Sweeten Real vs. Shining Building Business | Sweeten Real vs. Huaku Development Co | Sweeten Real vs. Founding Construction Development |
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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