Correlation Between HOYA Resort and Pontex Polyblend
Can any of the company-specific risk be diversified away by investing in both HOYA Resort and Pontex Polyblend 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 Pontex Polyblend 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 Pontex Polyblend CoLtd, you can compare the effects of market volatilities on HOYA Resort and Pontex Polyblend 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 Pontex Polyblend. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA Resort and Pontex Polyblend.
Diversification Opportunities for HOYA Resort and Pontex Polyblend
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HOYA and Pontex is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Resort Hotel and Pontex Polyblend CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pontex Polyblend CoLtd 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 Pontex Polyblend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pontex Polyblend CoLtd has no effect on the direction of HOYA Resort i.e., HOYA Resort and Pontex Polyblend go up and down completely randomly.
Pair Corralation between HOYA Resort and Pontex Polyblend
Assuming the 90 days trading horizon HOYA Resort Hotel is expected to under-perform the Pontex Polyblend. But the stock apears to be less risky and, when comparing its historical volatility, HOYA Resort Hotel is 1.54 times less risky than Pontex Polyblend. The stock trades about -0.12 of its potential returns per unit of risk. The Pontex Polyblend CoLtd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Pontex Polyblend CoLtd on September 5, 2024 and sell it today you would earn a total of 815.00 from holding Pontex Polyblend CoLtd or generate 57.39% 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. Pontex Polyblend CoLtd
Performance |
| Timeline |
| HOYA Resort Hotel |
| Pontex Polyblend CoLtd |
HOYA Resort and Pontex Polyblend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA Resort and Pontex Polyblend
The main advantage of trading using opposite HOYA Resort and Pontex Polyblend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA Resort position performs unexpectedly, Pontex Polyblend 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 Pontex Polyblend will offset losses from the drop in Pontex Polyblend's long position.| HOYA Resort vs. Chun Yuan Steel | HOYA Resort vs. Feng Hsin Steel | HOYA Resort vs. Shinkong Synthetic Fiber | HOYA Resort vs. Wei Chih Steel |
| Pontex Polyblend vs. Mechema Chemicals Int | Pontex Polyblend vs. HOYA Resort Hotel | Pontex Polyblend vs. Formosa International Hotels | Pontex Polyblend vs. Chailease Holding 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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