Correlation Between Chinese Maritime and HOYA Resort
Can any of the company-specific risk be diversified away by investing in both Chinese Maritime and HOYA Resort 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 Chinese Maritime and HOYA Resort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Maritime Transport and HOYA Resort Hotel, you can compare the effects of market volatilities on Chinese Maritime and HOYA Resort 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 Chinese Maritime with a short position of HOYA Resort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Maritime and HOYA Resort.
Diversification Opportunities for Chinese Maritime and HOYA Resort
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chinese and HOYA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Maritime Transport and HOYA Resort Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA Resort Hotel and Chinese Maritime 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 Chinese Maritime Transport are associated (or correlated) with HOYA Resort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA Resort Hotel has no effect on the direction of Chinese Maritime i.e., Chinese Maritime and HOYA Resort go up and down completely randomly.
Pair Corralation between Chinese Maritime and HOYA Resort
Assuming the 90 days trading horizon Chinese Maritime Transport is expected to generate 0.74 times more return on investment than HOYA Resort. However, Chinese Maritime Transport is 1.35 times less risky than HOYA Resort. It trades about 0.02 of its potential returns per unit of risk. HOYA Resort Hotel is currently generating about -0.06 per unit of risk. If you would invest 4,085 in Chinese Maritime Transport on September 2, 2024 and sell it today you would earn a total of 215.00 from holding Chinese Maritime Transport or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Maritime Transport vs. HOYA Resort Hotel
Performance |
| Timeline |
| Chinese Maritime Tra |
| HOYA Resort Hotel |
Chinese Maritime and HOYA Resort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Maritime and HOYA Resort
The main advantage of trading using opposite Chinese Maritime and HOYA Resort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Maritime position performs unexpectedly, HOYA Resort 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 HOYA Resort will offset losses from the drop in HOYA Resort's long position.| Chinese Maritime vs. BES Engineering Co | Chinese Maritime vs. Continental Holdings Corp | Chinese Maritime vs. Kee Tai Properties | Chinese Maritime vs. Hung Sheng Construction |
| HOYA Resort vs. Formosa International Hotels | HOYA Resort vs. Ambassador Hotel | HOYA Resort vs. FDC International Hotels | HOYA Resort vs. First Hotel Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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