Correlation Between Ho Hup and Uchi Technologies
Can any of the company-specific risk be diversified away by investing in both Ho Hup and Uchi Technologies 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 Uchi Technologies 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 Uchi Technologies Bhd, you can compare the effects of market volatilities on Ho Hup and Uchi Technologies 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 Uchi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ho Hup and Uchi Technologies.
Diversification Opportunities for Ho Hup and Uchi Technologies
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 5169 and Uchi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ho Hup Construction and Uchi Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uchi Technologies Bhd 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 Uchi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uchi Technologies Bhd has no effect on the direction of Ho Hup i.e., Ho Hup and Uchi Technologies go up and down completely randomly.
Pair Corralation between Ho Hup and Uchi Technologies
Assuming the 90 days trading horizon Ho Hup Construction is expected to under-perform the Uchi Technologies. In addition to that, Ho Hup is 4.16 times more volatile than Uchi Technologies Bhd. It trades about -0.01 of its total potential returns per unit of risk. Uchi Technologies Bhd is currently generating about 0.07 per unit of volatility. If you would invest 278.00 in Uchi Technologies Bhd on August 27, 2024 and sell it today you would earn a total of 107.00 from holding Uchi Technologies Bhd or generate 38.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ho Hup Construction vs. Uchi Technologies Bhd
Performance |
| Timeline |
| Ho Hup Construction |
| Uchi Technologies Bhd |
Ho Hup and Uchi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ho Hup and Uchi Technologies
The main advantage of trading using opposite Ho Hup and Uchi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ho Hup position performs unexpectedly, Uchi Technologies 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 Uchi Technologies will offset losses from the drop in Uchi Technologies' long position.| Ho Hup vs. Apex Healthcare Bhd | Ho Hup vs. Aeon Credit Service | Ho Hup vs. Public Bank Bhd | Ho Hup vs. Hong Leong Bank |
| Uchi Technologies vs. K One Technology Bhd | Uchi Technologies vs. Digistar Bhd | Uchi Technologies vs. Minetech Resources Bhd | Uchi Technologies vs. OpenSys M 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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