Correlation Between Sweeten Real and Chong Hong
Can any of the company-specific risk be diversified away by investing in both Sweeten Real and Chong Hong 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 Sweeten Real and Chong Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sweeten Real Estate and Chong Hong Construction, you can compare the effects of market volatilities on Sweeten Real and Chong Hong 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 Sweeten Real with a short position of Chong Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sweeten Real and Chong Hong.
Diversification Opportunities for Sweeten Real and Chong Hong
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sweeten and Chong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sweeten Real Estate and Chong Hong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chong Hong Construction and Sweeten Real 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 Sweeten Real Estate are associated (or correlated) with Chong Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chong Hong Construction has no effect on the direction of Sweeten Real i.e., Sweeten Real and Chong Hong go up and down completely randomly.
Pair Corralation between Sweeten Real and Chong Hong
Assuming the 90 days trading horizon Sweeten Real Estate is expected to generate 0.91 times more return on investment than Chong Hong. However, Sweeten Real Estate is 1.1 times less risky than Chong Hong. It trades about 0.04 of its potential returns per unit of risk. Chong Hong Construction is currently generating about 0.02 per unit of risk. If you would invest 2,715 in Sweeten Real Estate on August 31, 2024 and sell it today you would earn a total of 695.00 from holding Sweeten Real Estate or generate 25.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Sweeten Real Estate vs. Chong Hong Construction
Performance |
| Timeline |
| Sweeten Real Estate |
| Chong Hong Construction |
Sweeten Real and Chong Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sweeten Real and Chong Hong
The main advantage of trading using opposite Sweeten Real and Chong Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sweeten Real position performs unexpectedly, Chong Hong 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 Chong Hong will offset losses from the drop in Chong Hong's long position.| Sweeten Real vs. Chong Hong Construction | Sweeten Real vs. Shining Building Business | Sweeten Real vs. Huaku Development Co | Sweeten Real vs. Founding Construction Development |
| Chong Hong vs. Huaku Development Co | Chong Hong vs. Ruentex Development Co | Chong Hong vs. CTCI Corp | Chong Hong vs. Information Technology Total |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |