Correlation Between Hung Sheng and Yong Shun
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and Yong Shun 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 Yong Shun 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 Yong Shun Chemical, you can compare the effects of market volatilities on Hung Sheng and Yong Shun 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 Yong Shun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and Yong Shun.
Diversification Opportunities for Hung Sheng and Yong Shun
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hung and Yong is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and Yong Shun Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yong Shun Chemical 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 Yong Shun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yong Shun Chemical has no effect on the direction of Hung Sheng i.e., Hung Sheng and Yong Shun go up and down completely randomly.
Pair Corralation between Hung Sheng and Yong Shun
Assuming the 90 days trading horizon Hung Sheng Construction is expected to generate 1.18 times more return on investment than Yong Shun. However, Hung Sheng is 1.18 times more volatile than Yong Shun Chemical. It trades about 0.13 of its potential returns per unit of risk. Yong Shun Chemical is currently generating about -0.3 per unit of risk. If you would invest 2,565 in Hung Sheng Construction on September 5, 2024 and sell it today you would earn a total of 115.00 from holding Hung Sheng Construction or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hung Sheng Construction vs. Yong Shun Chemical
Performance |
| Timeline |
| Hung Sheng Construction |
| Yong Shun Chemical |
Hung Sheng and Yong Shun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Sheng and Yong Shun
The main advantage of trading using opposite Hung Sheng and Yong Shun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, Yong Shun 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 Yong Shun will offset losses from the drop in Yong Shun'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 |
| Yong Shun vs. Sunmax Biotechnology Co | Yong Shun vs. Feng Hsin Steel | Yong Shun vs. First Copper Technology | Yong Shun vs. Century Iron And |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 |