Correlation Between Hsin Ba and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Hsin Ba and Hunya Foods 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 Hsin Ba and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsin Ba Ba and Hunya Foods Co, you can compare the effects of market volatilities on Hsin Ba and Hunya Foods 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 Hsin Ba with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsin Ba and Hunya Foods.
Diversification Opportunities for Hsin Ba and Hunya Foods
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hsin and Hunya is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hsin Ba Ba and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Hsin Ba 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 Hsin Ba Ba are associated (or correlated) with Hunya Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunya Foods has no effect on the direction of Hsin Ba i.e., Hsin Ba and Hunya Foods go up and down completely randomly.
Pair Corralation between Hsin Ba and Hunya Foods
Assuming the 90 days trading horizon Hsin Ba Ba is expected to generate 2.84 times more return on investment than Hunya Foods. However, Hsin Ba is 2.84 times more volatile than Hunya Foods Co. It trades about 0.24 of its potential returns per unit of risk. Hunya Foods Co is currently generating about 0.18 per unit of risk. If you would invest 10,900 in Hsin Ba Ba on November 27, 2024 and sell it today you would earn a total of 1,000.00 from holding Hsin Ba Ba or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Hsin Ba Ba vs. Hunya Foods Co
Performance |
| Timeline |
| Hsin Ba Ba |
| Hunya Foods |
Hsin Ba and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hsin Ba and Hunya Foods
The main advantage of trading using opposite Hsin Ba and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsin Ba position performs unexpectedly, Hunya Foods 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 Hunya Foods will offset losses from the drop in Hunya Foods' long position.| Hsin Ba vs. Great China Metal | Hsin Ba vs. Ton Yi Industrial | Hsin Ba vs. Ching Feng Home | Hsin Ba vs. Choice Development |
| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |