Correlation Between Hung Sheng and TTY Biopharm
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and TTY Biopharm 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 TTY Biopharm 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 TTY Biopharm Co, you can compare the effects of market volatilities on Hung Sheng and TTY Biopharm 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 TTY Biopharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and TTY Biopharm.
Diversification Opportunities for Hung Sheng and TTY Biopharm
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hung and TTY is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and TTY Biopharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTY Biopharm 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 TTY Biopharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTY Biopharm has no effect on the direction of Hung Sheng i.e., Hung Sheng and TTY Biopharm go up and down completely randomly.
Pair Corralation between Hung Sheng and TTY Biopharm
Assuming the 90 days trading horizon Hung Sheng Construction is expected to generate 2.68 times more return on investment than TTY Biopharm. However, Hung Sheng is 2.68 times more volatile than TTY Biopharm Co. It trades about 0.08 of its potential returns per unit of risk. TTY Biopharm Co is currently generating about -0.04 per unit of risk. If you would invest 2,040 in Hung Sheng Construction on September 12, 2024 and sell it today you would earn a total of 730.00 from holding Hung Sheng Construction or generate 35.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hung Sheng Construction vs. TTY Biopharm Co
Performance |
| Timeline |
| Hung Sheng Construction |
| TTY Biopharm |
Hung Sheng and TTY Biopharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Sheng and TTY Biopharm
The main advantage of trading using opposite Hung Sheng and TTY Biopharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, TTY Biopharm 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 TTY Biopharm will offset losses from the drop in TTY Biopharm's long position.| Hung Sheng vs. Chong Hong Construction | Hung Sheng vs. Ruentex Development Co | Hung Sheng vs. Symtek Automation Asia | Hung Sheng vs. WiseChip Semiconductor |
| TTY Biopharm vs. Hung Sheng Construction | TTY Biopharm vs. Datavan International | TTY Biopharm vs. Strong H Machinery | TTY Biopharm vs. Provision Information CoLtd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |