Correlation Between Century Iron and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Century Iron 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 Century Iron and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Iron And and Hunya Foods Co, you can compare the effects of market volatilities on Century Iron 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 Century Iron with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Iron and Hunya Foods.
Diversification Opportunities for Century Iron and Hunya Foods
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Century and Hunya is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Century Iron And and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Century Iron 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 Century Iron And 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 Century Iron i.e., Century Iron and Hunya Foods go up and down completely randomly.
Pair Corralation between Century Iron and Hunya Foods
Assuming the 90 days trading horizon Century Iron And is expected to under-perform the Hunya Foods. In addition to that, Century Iron is 3.1 times more volatile than Hunya Foods Co. It trades about -0.18 of its total potential returns per unit of risk. Hunya Foods Co is currently generating about 0.04 per unit of volatility. If you would invest 2,285 in Hunya Foods Co on October 20, 2024 and sell it today you would earn a total of 15.00 from holding Hunya Foods Co or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Iron And vs. Hunya Foods Co
Performance |
| Timeline |
| Century Iron And |
| Hunya Foods |
Century Iron and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Iron and Hunya Foods
The main advantage of trading using opposite Century Iron and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Iron 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.| Century Iron vs. Swancor Holding Co | Century Iron vs. Hsin Kuang Steel | Century Iron vs. Ta Chen Stainless | Century Iron vs. Chung Hung Steel |
| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Wei Chuan Foods | Hunya Foods vs. Chia Hsin Cement | Hunya Foods vs. Grand Pacific Petrochemical |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |