Correlation Between Hung Sheng and Space Shuttle
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and Space Shuttle 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 Sheng and Space Shuttle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Sheng Construction and Space Shuttle Hi Tech, you can compare the effects of market volatilities on Hung Sheng and Space Shuttle 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 Sheng with a short position of Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and Space Shuttle.
Diversification Opportunities for Hung Sheng and Space Shuttle
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hung and Space is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi and Hung Sheng 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 Sheng Construction are associated (or correlated) with Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Hung Sheng i.e., Hung Sheng and Space Shuttle go up and down completely randomly.
Pair Corralation between Hung Sheng and Space Shuttle
Assuming the 90 days trading horizon Hung Sheng Construction is expected to generate 0.88 times more return on investment than Space Shuttle. However, Hung Sheng Construction is 1.13 times less risky than Space Shuttle. It trades about 0.01 of its potential returns per unit of risk. Space Shuttle Hi Tech is currently generating about -0.14 per unit of risk. If you would invest 2,705 in Hung Sheng Construction on September 2, 2024 and sell it today you would lose (10.00) from holding Hung Sheng Construction or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hung Sheng Construction vs. Space Shuttle Hi Tech
Performance |
| Timeline |
| Hung Sheng Construction |
| Space Shuttle Hi |
Hung Sheng and Space Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Sheng and Space Shuttle
The main advantage of trading using opposite Hung Sheng and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle's long position.| Hung Sheng vs. Chainqui Construction Development | Hung Sheng vs. Kee Tai Properties | Hung Sheng vs. BES Engineering Co | Hung Sheng vs. Zinwell |
| Space Shuttle vs. Universal Microelectronics Co | Space Shuttle vs. Greatek Electronics | Space Shuttle vs. Phihong Technology Co | Space Shuttle vs. Zippy Technology Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |