Correlation Between HOYA Resort and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both HOYA Resort and Chinese Maritime 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 Chinese Maritime 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 Chinese Maritime Transport, you can compare the effects of market volatilities on HOYA Resort and Chinese Maritime 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 Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA Resort and Chinese Maritime.
Diversification Opportunities for HOYA Resort and Chinese Maritime
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HOYA and Chinese is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Resort Hotel and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra 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 Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of HOYA Resort i.e., HOYA Resort and Chinese Maritime go up and down completely randomly.
Pair Corralation between HOYA Resort and Chinese Maritime
Assuming the 90 days trading horizon HOYA Resort Hotel is expected to under-perform the Chinese Maritime. In addition to that, HOYA Resort is 1.35 times more volatile than Chinese Maritime Transport. It trades about -0.06 of its total potential returns per unit of risk. Chinese Maritime Transport is currently generating about 0.02 per unit of volatility. 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 |
HOYA Resort Hotel vs. Chinese Maritime Transport
Performance |
| Timeline |
| HOYA Resort Hotel |
| Chinese Maritime Tra |
HOYA Resort and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA Resort and Chinese Maritime
The main advantage of trading using opposite HOYA Resort and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA Resort position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| HOYA Resort vs. Formosa International Hotels | HOYA Resort vs. Ambassador Hotel | HOYA Resort vs. FDC International Hotels | HOYA Resort vs. First Hotel Co |
| Chinese Maritime vs. BES Engineering Co | Chinese Maritime vs. Continental Holdings Corp | Chinese Maritime vs. Kee Tai Properties | Chinese Maritime vs. Hung Sheng Construction |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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