Correlation Between Atesco Industrial and Hung Hau
Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and Hung Hau 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 Atesco Industrial and Hung Hau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atesco Industrial Cartering and Hung Hau Agricultural, you can compare the effects of market volatilities on Atesco Industrial and Hung Hau 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 Atesco Industrial with a short position of Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and Hung Hau.
Diversification Opportunities for Atesco Industrial and Hung Hau
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atesco and Hung is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural and Atesco Industrial 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 Atesco Industrial Cartering are associated (or correlated) with Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and Hung Hau go up and down completely randomly.
Pair Corralation between Atesco Industrial and Hung Hau
Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to under-perform the Hung Hau. In addition to that, Atesco Industrial is 1.86 times more volatile than Hung Hau Agricultural. It trades about -0.16 of its total potential returns per unit of risk. Hung Hau Agricultural is currently generating about 0.02 per unit of volatility. If you would invest 1,050,000 in Hung Hau Agricultural on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Hung Hau Agricultural or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Atesco Industrial Cartering vs. Hung Hau Agricultural
Performance |
| Timeline |
| Atesco Industrial |
| Hung Hau Agricultural |
Atesco Industrial and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atesco Industrial and Hung Hau
The main advantage of trading using opposite Atesco Industrial and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atesco Industrial position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau's long position.| Atesco Industrial vs. Song Hong Garment | Atesco Industrial vs. Alphanam ME | Atesco Industrial vs. Hochiminh City Metal | Atesco Industrial vs. Danang Education Investment |
| Hung Hau vs. Song Hong Garment | Hung Hau vs. Alphanam ME | Hung Hau vs. Hochiminh City Metal | Hung Hau vs. Atesco Industrial Cartering |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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