Correlation Between Hengyuan Refining and OpenSys M
Can any of the company-specific risk be diversified away by investing in both Hengyuan Refining and OpenSys M 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 Hengyuan Refining and OpenSys M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hengyuan Refining and OpenSys M Bhd, you can compare the effects of market volatilities on Hengyuan Refining and OpenSys M 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 Hengyuan Refining with a short position of OpenSys M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengyuan Refining and OpenSys M.
Diversification Opportunities for Hengyuan Refining and OpenSys M
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hengyuan and OpenSys is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hengyuan Refining and OpenSys M Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpenSys M Bhd and Hengyuan Refining 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 Hengyuan Refining are associated (or correlated) with OpenSys M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpenSys M Bhd has no effect on the direction of Hengyuan Refining i.e., Hengyuan Refining and OpenSys M go up and down completely randomly.
Pair Corralation between Hengyuan Refining and OpenSys M
Assuming the 90 days trading horizon Hengyuan Refining is expected to under-perform the OpenSys M. In addition to that, Hengyuan Refining is 1.26 times more volatile than OpenSys M Bhd. It trades about -0.31 of its total potential returns per unit of risk. OpenSys M Bhd is currently generating about 0.01 per unit of volatility. If you would invest 37.00 in OpenSys M Bhd on August 28, 2024 and sell it today you would earn a total of 0.00 from holding OpenSys M Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengyuan Refining vs. OpenSys M Bhd
Performance |
| Timeline |
| Hengyuan Refining |
| OpenSys M Bhd |
Hengyuan Refining and OpenSys M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengyuan Refining and OpenSys M
The main advantage of trading using opposite Hengyuan Refining and OpenSys M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengyuan Refining position performs unexpectedly, OpenSys M 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 OpenSys M will offset losses from the drop in OpenSys M's long position.| Hengyuan Refining vs. Techfast Holdings Bhd | Hengyuan Refining vs. Digistar Bhd | Hengyuan Refining vs. Minetech Resources Bhd | Hengyuan Refining vs. OpenSys M Bhd |
| OpenSys M vs. Malayan Banking Bhd | OpenSys M vs. Public Bank Bhd | OpenSys M vs. Petronas Chemicals Group | OpenSys M vs. Tenaga Nasional Bhd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |