Correlation Between HOYA Resort and Feng Hsin
Can any of the company-specific risk be diversified away by investing in both HOYA Resort and Feng Hsin 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 HOYA Resort and Feng Hsin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOYA Resort Hotel and Feng Hsin Steel, you can compare the effects of market volatilities on HOYA Resort and Feng Hsin 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 HOYA Resort with a short position of Feng Hsin. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA Resort and Feng Hsin.
Diversification Opportunities for HOYA Resort and Feng Hsin
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOYA and Feng is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Resort Hotel and Feng Hsin Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Hsin Steel and HOYA Resort 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 HOYA Resort Hotel are associated (or correlated) with Feng Hsin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Hsin Steel has no effect on the direction of HOYA Resort i.e., HOYA Resort and Feng Hsin go up and down completely randomly.
Pair Corralation between HOYA Resort and Feng Hsin
Assuming the 90 days trading horizon HOYA Resort Hotel is expected to generate 0.8 times more return on investment than Feng Hsin. However, HOYA Resort Hotel is 1.25 times less risky than Feng Hsin. It trades about -0.33 of its potential returns per unit of risk. Feng Hsin Steel is currently generating about -0.3 per unit of risk. If you would invest 2,010 in HOYA Resort Hotel on September 1, 2024 and sell it today you would lose (190.00) from holding HOYA Resort Hotel or give up 9.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOYA Resort Hotel vs. Feng Hsin Steel
Performance |
| Timeline |
| HOYA Resort Hotel |
| Feng Hsin Steel |
HOYA Resort and Feng Hsin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA Resort and Feng Hsin
The main advantage of trading using opposite HOYA Resort and Feng Hsin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA Resort position performs unexpectedly, Feng Hsin 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 Feng Hsin will offset losses from the drop in Feng Hsin's long position.| HOYA Resort vs. AVerMedia Technologies | HOYA Resort vs. Cayenne Entertainment Technology | HOYA Resort vs. Sports Gear Co | HOYA Resort vs. Provision Information CoLtd |
| Feng Hsin vs. Basso Industry Corp | Feng Hsin vs. Chung Hsin Electric Machinery | Feng Hsin vs. TYC Brother Industrial | Feng Hsin vs. TECO Electric Machinery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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