Correlation Between Hung Sheng and Delpha Construction
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and Delpha Construction 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 Delpha Construction 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 Delpha Construction Co, you can compare the effects of market volatilities on Hung Sheng and Delpha Construction 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 Delpha Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and Delpha Construction.
Diversification Opportunities for Hung Sheng and Delpha Construction
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hung and Delpha is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and Delpha Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delpha Construction 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 Delpha Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delpha Construction has no effect on the direction of Hung Sheng i.e., Hung Sheng and Delpha Construction go up and down completely randomly.
Pair Corralation between Hung Sheng and Delpha Construction
Assuming the 90 days trading horizon Hung Sheng is expected to generate 2.16 times less return on investment than Delpha Construction. But when comparing it to its historical volatility, Hung Sheng Construction is 1.19 times less risky than Delpha Construction. It trades about 0.07 of its potential returns per unit of risk. Delpha Construction Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Delpha Construction Co on August 30, 2024 and sell it today you would earn a total of 205.00 from holding Delpha Construction Co or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hung Sheng Construction vs. Delpha Construction Co
Performance |
| Timeline |
| Hung Sheng Construction |
| Delpha Construction |
Hung Sheng and Delpha Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Sheng and Delpha Construction
The main advantage of trading using opposite Hung Sheng and Delpha Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, Delpha Construction 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 Delpha Construction will offset losses from the drop in Delpha Construction's long position.| Hung Sheng vs. Tainan Spinning Co | Hung Sheng vs. Carnival Industrial Corp | Hung Sheng vs. Symtek Automation Asia | Hung Sheng vs. CTCI Corp |
| Delpha Construction vs. Tainan Spinning Co | Delpha Construction vs. Carnival Industrial Corp | Delpha Construction vs. Symtek Automation Asia | Delpha Construction vs. CTCI 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |