Correlation Between YeaShin International and Hung Sheng
Can any of the company-specific risk be diversified away by investing in both YeaShin International and Hung Sheng 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 YeaShin International and Hung Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YeaShin International Development and Hung Sheng Construction, you can compare the effects of market volatilities on YeaShin International and Hung Sheng 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 YeaShin International with a short position of Hung Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeaShin International and Hung Sheng.
Diversification Opportunities for YeaShin International and Hung Sheng
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YeaShin and Hung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding YeaShin International Developm and Hung Sheng Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Sheng Construction and YeaShin International 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 YeaShin International Development are associated (or correlated) with Hung Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Sheng Construction has no effect on the direction of YeaShin International i.e., YeaShin International and Hung Sheng go up and down completely randomly.
Pair Corralation between YeaShin International and Hung Sheng
Assuming the 90 days trading horizon YeaShin International Development is expected to generate 1.79 times more return on investment than Hung Sheng. However, YeaShin International is 1.79 times more volatile than Hung Sheng Construction. It trades about 0.44 of its potential returns per unit of risk. Hung Sheng Construction is currently generating about 0.42 per unit of risk. If you would invest 3,120 in YeaShin International Development on November 28, 2024 and sell it today you would earn a total of 370.00 from holding YeaShin International Development or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
YeaShin International Developm vs. Hung Sheng Construction
Performance |
| Timeline |
| YeaShin International |
| Hung Sheng Construction |
YeaShin International and Hung Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeaShin International and Hung Sheng
The main advantage of trading using opposite YeaShin International and Hung Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeaShin International position performs unexpectedly, Hung Sheng 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 Hung Sheng will offset losses from the drop in Hung Sheng's long position.| YeaShin International vs. Rich Development Co | YeaShin International vs. Synmosa Biopharma | YeaShin International vs. Fulltech Fiber Glass | YeaShin International vs. Gloria Material Technology |
| Hung Sheng vs. Chainqui Construction Development | Hung Sheng vs. Kee Tai Properties | Hung Sheng vs. BES Engineering Co | Hung Sheng vs. Zinwell |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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