Correlation Between Voltronic Power and Hung Ching
Can any of the company-specific risk be diversified away by investing in both Voltronic Power and Hung Ching 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 Voltronic Power and Hung Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voltronic Power Technology and Hung Ching Development, you can compare the effects of market volatilities on Voltronic Power and Hung Ching 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 Voltronic Power with a short position of Hung Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voltronic Power and Hung Ching.
Diversification Opportunities for Voltronic Power and Hung Ching
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voltronic and Hung is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Voltronic Power Technology and Hung Ching Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Ching Development and Voltronic Power 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 Voltronic Power Technology are associated (or correlated) with Hung Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Ching Development has no effect on the direction of Voltronic Power i.e., Voltronic Power and Hung Ching go up and down completely randomly.
Pair Corralation between Voltronic Power and Hung Ching
Assuming the 90 days trading horizon Voltronic Power Technology is expected to under-perform the Hung Ching. In addition to that, Voltronic Power is 1.08 times more volatile than Hung Ching Development. It trades about -0.07 of its total potential returns per unit of risk. Hung Ching Development is currently generating about 0.07 per unit of volatility. If you would invest 3,235 in Hung Ching Development on October 26, 2024 and sell it today you would earn a total of 315.00 from holding Hung Ching Development or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voltronic Power Technology vs. Hung Ching Development
Performance |
| Timeline |
| Voltronic Power Tech |
| Hung Ching Development |
Voltronic Power and Hung Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voltronic Power and Hung Ching
The main advantage of trading using opposite Voltronic Power and Hung Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voltronic Power position performs unexpectedly, Hung Ching 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 Ching will offset losses from the drop in Hung Ching's long position.| Voltronic Power vs. Silergy Corp | Voltronic Power vs. Airtac International Group | Voltronic Power vs. Advantech Co | Voltronic Power vs. Sinbon Electronics Co |
| Hung Ching vs. Hung Sheng Construction | Hung Ching vs. Kindom Construction Corp | Hung Ching vs. Kee Tai Properties | Hung Ching vs. Delpha Construction Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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