Correlation Between Haitong Securities and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and FUTURE GAMING 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 Haitong Securities and FUTURE GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and FUTURE GAMING GRP, you can compare the effects of market volatilities on Haitong Securities and FUTURE GAMING 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 Haitong Securities with a short position of FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and FUTURE GAMING.
Diversification Opportunities for Haitong Securities and FUTURE GAMING
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haitong and FUTURE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Haitong Securities i.e., Haitong Securities and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Haitong Securities and FUTURE GAMING
Assuming the 90 days horizon Haitong Securities Co is expected to generate 1.1 times more return on investment than FUTURE GAMING. However, Haitong Securities is 1.1 times more volatile than FUTURE GAMING GRP. It trades about 0.07 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.03 per unit of risk. If you would invest 39.00 in Haitong Securities Co on September 14, 2024 and sell it today you would earn a total of 44.00 from holding Haitong Securities Co or generate 112.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Haitong Securities Co vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Haitong Securities |
| FUTURE GAMING GRP |
Haitong Securities and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and FUTURE GAMING
The main advantage of trading using opposite Haitong Securities and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Haitong Securities vs. FUTURE GAMING GRP | Haitong Securities vs. Gol Intelligent Airlines | Haitong Securities vs. American Airlines Group | Haitong Securities vs. SINGAPORE AIRLINES |
| FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp | FUTURE GAMING vs. SIVERS SEMICONDUCTORS AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |