Correlation Between TONGDAO LIEPGR and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both TONGDAO LIEPGR and HUDSON GLOBAL 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 TONGDAO LIEPGR and HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TONGDAO LIEPGR DL 0001 and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on TONGDAO LIEPGR and HUDSON GLOBAL 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 TONGDAO LIEPGR with a short position of HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TONGDAO LIEPGR and HUDSON GLOBAL.
Diversification Opportunities for TONGDAO LIEPGR and HUDSON GLOBAL
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TONGDAO and HUDSON is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding TONGDAO LIEPGR DL 0001 and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL and TONGDAO LIEPGR 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 TONGDAO LIEPGR DL 0001 are associated (or correlated) with HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of TONGDAO LIEPGR i.e., TONGDAO LIEPGR and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between TONGDAO LIEPGR and HUDSON GLOBAL
Assuming the 90 days horizon TONGDAO LIEPGR DL 0001 is expected to generate 1.17 times more return on investment than HUDSON GLOBAL. However, TONGDAO LIEPGR is 1.17 times more volatile than HUDSON GLOBAL INCDL 001. It trades about 0.06 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about 0.05 per unit of risk. If you would invest 26.00 in TONGDAO LIEPGR DL 0001 on August 30, 2024 and sell it today you would earn a total of 1.00 from holding TONGDAO LIEPGR DL 0001 or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TONGDAO LIEPGR DL 0001 vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| TONGDAO LIEPGR DL |
| HUDSON GLOBAL INCDL |
TONGDAO LIEPGR and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TONGDAO LIEPGR and HUDSON GLOBAL
The main advantage of trading using opposite TONGDAO LIEPGR and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TONGDAO LIEPGR position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| TONGDAO LIEPGR vs. Recruit Holdings Co | TONGDAO LIEPGR vs. Randstad NV | TONGDAO LIEPGR vs. TRINET GROUP INC |
| HUDSON GLOBAL vs. REINET INVESTMENTS SCA | HUDSON GLOBAL vs. Virtus Investment Partners | HUDSON GLOBAL vs. SEI INVESTMENTS | HUDSON GLOBAL vs. Apollo Investment Corp |
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.
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