Correlation Between Ho Hup and Icon Offshore
Can any of the company-specific risk be diversified away by investing in both Ho Hup and Icon Offshore 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 Icon Offshore 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 Icon Offshore Bhd, you can compare the effects of market volatilities on Ho Hup and Icon Offshore 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 Icon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ho Hup and Icon Offshore.
Diversification Opportunities for Ho Hup and Icon Offshore
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5169 and Icon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ho Hup Construction and Icon Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Offshore 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 Icon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Offshore Bhd has no effect on the direction of Ho Hup i.e., Ho Hup and Icon Offshore go up and down completely randomly.
Pair Corralation between Ho Hup and Icon Offshore
Assuming the 90 days trading horizon Ho Hup Construction is expected to under-perform the Icon Offshore. In addition to that, Ho Hup is 1.39 times more volatile than Icon Offshore Bhd. It trades about -0.01 of its total potential returns per unit of risk. Icon Offshore Bhd is currently generating about 0.1 per unit of volatility. If you would invest 52.00 in Icon Offshore Bhd on September 4, 2024 and sell it today you would earn a total of 55.00 from holding Icon Offshore Bhd or generate 105.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
Ho Hup Construction vs. Icon Offshore Bhd
Performance |
| Timeline |
| Ho Hup Construction |
| Icon Offshore Bhd |
Ho Hup and Icon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ho Hup and Icon Offshore
The main advantage of trading using opposite Ho Hup and Icon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ho Hup position performs unexpectedly, Icon Offshore 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 Icon Offshore will offset losses from the drop in Icon Offshore's long position.| Ho Hup vs. Sunway Construction Group | Ho Hup vs. Pesona Metro Holdings | Ho Hup vs. Central Industrial Corp |
| Icon Offshore vs. Binasat Communications Bhd | Icon Offshore vs. BP Plastics Holding | Icon Offshore vs. Oriental Food Industries | Icon Offshore vs. Silver Ridge Holdings |
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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