Correlation Between Tidehold Development and Kwong Fong
Can any of the company-specific risk be diversified away by investing in both Tidehold Development and Kwong Fong 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 Tidehold Development and Kwong Fong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidehold Development Co and Kwong Fong Industries, you can compare the effects of market volatilities on Tidehold Development and Kwong Fong 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 Tidehold Development with a short position of Kwong Fong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidehold Development and Kwong Fong.
Diversification Opportunities for Tidehold Development and Kwong Fong
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tidehold and Kwong is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tidehold Development Co and Kwong Fong Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kwong Fong Industries and Tidehold Development 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 Tidehold Development Co are associated (or correlated) with Kwong Fong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kwong Fong Industries has no effect on the direction of Tidehold Development i.e., Tidehold Development and Kwong Fong go up and down completely randomly.
Pair Corralation between Tidehold Development and Kwong Fong
Assuming the 90 days trading horizon Tidehold Development Co is expected to generate 1.1 times more return on investment than Kwong Fong. However, Tidehold Development is 1.1 times more volatile than Kwong Fong Industries. It trades about -0.08 of its potential returns per unit of risk. Kwong Fong Industries is currently generating about -0.19 per unit of risk. If you would invest 1,710 in Tidehold Development Co on August 31, 2024 and sell it today you would lose (55.00) from holding Tidehold Development Co or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tidehold Development Co vs. Kwong Fong Industries
Performance |
| Timeline |
| Tidehold Development |
| Kwong Fong Industries |
Tidehold Development and Kwong Fong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidehold Development and Kwong Fong
The main advantage of trading using opposite Tidehold Development and Kwong Fong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidehold Development position performs unexpectedly, Kwong Fong 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 Kwong Fong will offset losses from the drop in Kwong Fong's long position.| Tidehold Development vs. Ton Yi Industrial | Tidehold Development vs. Shinih Enterprise Co | Tidehold Development vs. Associated Industries China | Tidehold Development vs. Taiwan Tea Corp |
| Kwong Fong vs. Chaintech Technology Corp | Kwong Fong vs. AVerMedia Technologies | Kwong Fong vs. Avision | Kwong Fong vs. Clevo 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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