Correlation Between Duopharma Biotech and Hengyuan Refining
Can any of the company-specific risk be diversified away by investing in both Duopharma Biotech and Hengyuan Refining 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 Duopharma Biotech and Hengyuan Refining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duopharma Biotech Bhd and Hengyuan Refining, you can compare the effects of market volatilities on Duopharma Biotech and Hengyuan Refining 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 Duopharma Biotech with a short position of Hengyuan Refining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duopharma Biotech and Hengyuan Refining.
Diversification Opportunities for Duopharma Biotech and Hengyuan Refining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duopharma and Hengyuan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Duopharma Biotech Bhd and Hengyuan Refining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengyuan Refining and Duopharma Biotech 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 Duopharma Biotech Bhd are associated (or correlated) with Hengyuan Refining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengyuan Refining has no effect on the direction of Duopharma Biotech i.e., Duopharma Biotech and Hengyuan Refining go up and down completely randomly.
Pair Corralation between Duopharma Biotech and Hengyuan Refining
Assuming the 90 days trading horizon Duopharma Biotech Bhd is expected to generate 0.62 times more return on investment than Hengyuan Refining. However, Duopharma Biotech Bhd is 1.61 times less risky than Hengyuan Refining. It trades about -0.19 of its potential returns per unit of risk. Hengyuan Refining is currently generating about -0.31 per unit of risk. If you would invest 131.00 in Duopharma Biotech Bhd on August 28, 2024 and sell it today you would lose (6.00) from holding Duopharma Biotech Bhd or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duopharma Biotech Bhd vs. Hengyuan Refining
Performance |
| Timeline |
| Duopharma Biotech Bhd |
| Hengyuan Refining |
Duopharma Biotech and Hengyuan Refining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duopharma Biotech and Hengyuan Refining
The main advantage of trading using opposite Duopharma Biotech and Hengyuan Refining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duopharma Biotech position performs unexpectedly, Hengyuan Refining 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 Hengyuan Refining will offset losses from the drop in Hengyuan Refining's long position.| Duopharma Biotech vs. Digistar Bhd | Duopharma Biotech vs. Minetech Resources Bhd | Duopharma Biotech vs. OpenSys M Bhd | Duopharma Biotech vs. Insas Bhd |
| Hengyuan Refining vs. Techfast Holdings Bhd | Hengyuan Refining vs. Digistar Bhd | Hengyuan Refining vs. Minetech Resources Bhd | Hengyuan Refining vs. OpenSys M Bhd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |