Correlation Between AVY Precision and Hung Sheng
Can any of the company-specific risk be diversified away by investing in both AVY Precision 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 AVY Precision and Hung Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVY Precision Technology and Hung Sheng Construction, you can compare the effects of market volatilities on AVY Precision 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 AVY Precision with a short position of Hung Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVY Precision and Hung Sheng.
Diversification Opportunities for AVY Precision and Hung Sheng
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVY and Hung is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AVY Precision Technology 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 AVY Precision 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 AVY Precision Technology 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 AVY Precision i.e., AVY Precision and Hung Sheng go up and down completely randomly.
Pair Corralation between AVY Precision and Hung Sheng
Assuming the 90 days trading horizon AVY Precision Technology is expected to under-perform the Hung Sheng. In addition to that, AVY Precision is 1.08 times more volatile than Hung Sheng Construction. It trades about -0.18 of its total potential returns per unit of risk. Hung Sheng Construction is currently generating about 0.14 per unit of volatility. If you would invest 2,565 in Hung Sheng Construction on September 4, 2024 and sell it today you would earn a total of 125.00 from holding Hung Sheng Construction or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVY Precision Technology vs. Hung Sheng Construction
Performance |
| Timeline |
| AVY Precision Technology |
| Hung Sheng Construction |
AVY Precision and Hung Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVY Precision and Hung Sheng
The main advantage of trading using opposite AVY Precision and Hung Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVY Precision 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.| AVY Precision vs. Ability Enterprise Co | AVY Precision vs. XAC Automation | AVY Precision vs. Cheng Fwa Industrial | AVY Precision vs. Kaulin Mfg |
| Hung Sheng vs. Huaku Development Co | Hung Sheng vs. Ruentex Development Co | Hung Sheng vs. Taiwan Cement Corp | Hung Sheng vs. Symtek Automation Asia |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets |