Correlation Between Ho Hup and Sunway Construction
Can any of the company-specific risk be diversified away by investing in both Ho Hup and Sunway Construction 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 Ho Hup and Sunway Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ho Hup Construction and Sunway Construction Group, you can compare the effects of market volatilities on Ho Hup and Sunway Construction 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 Ho Hup with a short position of Sunway Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ho Hup and Sunway Construction.
Diversification Opportunities for Ho Hup and Sunway Construction
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 5169 and Sunway is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ho Hup Construction and Sunway Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunway Construction and Ho Hup 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 Ho Hup Construction are associated (or correlated) with Sunway Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunway Construction has no effect on the direction of Ho Hup i.e., Ho Hup and Sunway Construction go up and down completely randomly.
Pair Corralation between Ho Hup and Sunway Construction
Assuming the 90 days trading horizon Ho Hup Construction is expected to under-perform the Sunway Construction. In addition to that, Ho Hup is 2.06 times more volatile than Sunway Construction Group. It trades about 0.0 of its total potential returns per unit of risk. Sunway Construction Group is currently generating about 0.16 per unit of volatility. If you would invest 179.00 in Sunway Construction Group on September 3, 2024 and sell it today you would earn a total of 261.00 from holding Sunway Construction Group or generate 145.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ho Hup Construction vs. Sunway Construction Group
Performance |
| Timeline |
| Ho Hup Construction |
| Sunway Construction |
Ho Hup and Sunway Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ho Hup and Sunway Construction
The main advantage of trading using opposite Ho Hup and Sunway Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ho Hup position performs unexpectedly, Sunway Construction 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 Sunway Construction will offset losses from the drop in Sunway Construction's long position.| Ho Hup vs. Binasat Communications Bhd | Ho Hup vs. Dataprep Holdings Bhd | Ho Hup vs. Lyc Healthcare Bhd | Ho Hup vs. Apex Healthcare Bhd |
| Sunway Construction vs. Pesona Metro Holdings | Sunway Construction vs. Ho Hup Construction | Sunway Construction vs. Central Industrial Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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