Correlation Between HILONG HOLDING and MSAD INSURANCE
Can any of the company-specific risk be diversified away by investing in both HILONG HOLDING and MSAD INSURANCE 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 HILONG HOLDING and MSAD INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HILONG HOLDING LTD and MSAD INSURANCE, you can compare the effects of market volatilities on HILONG HOLDING and MSAD INSURANCE 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 HILONG HOLDING with a short position of MSAD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HILONG HOLDING and MSAD INSURANCE.
Diversification Opportunities for HILONG HOLDING and MSAD INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HILONG and MSAD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HILONG HOLDING LTD and MSAD INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSAD INSURANCE and HILONG HOLDING 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 HILONG HOLDING LTD are associated (or correlated) with MSAD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSAD INSURANCE has no effect on the direction of HILONG HOLDING i.e., HILONG HOLDING and MSAD INSURANCE go up and down completely randomly.
Pair Corralation between HILONG HOLDING and MSAD INSURANCE
If you would invest (100.00) in HILONG HOLDING LTD on September 13, 2024 and sell it today you would earn a total of 100.00 from holding HILONG HOLDING LTD or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HILONG HOLDING LTD vs. MSAD INSURANCE
Performance |
| Timeline |
| HILONG HOLDING LTD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MSAD INSURANCE |
HILONG HOLDING and MSAD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HILONG HOLDING and MSAD INSURANCE
The main advantage of trading using opposite HILONG HOLDING and MSAD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HILONG HOLDING position performs unexpectedly, MSAD INSURANCE 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 MSAD INSURANCE will offset losses from the drop in MSAD INSURANCE's long position.| HILONG HOLDING vs. PennantPark Investment | HILONG HOLDING vs. REINET INVESTMENTS SCA | HILONG HOLDING vs. Strategic Investments AS | HILONG HOLDING vs. EAT WELL INVESTMENT |
| MSAD INSURANCE vs. Apple Inc | MSAD INSURANCE vs. Apple Inc | MSAD INSURANCE vs. Apple Inc | MSAD INSURANCE vs. Apple Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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