Correlation Between DATANG INTL and Hays Plc
Can any of the company-specific risk be diversified away by investing in both DATANG INTL and Hays Plc 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 DATANG INTL and Hays Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Hays plc, you can compare the effects of market volatilities on DATANG INTL and Hays Plc 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 DATANG INTL with a short position of Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Hays Plc.
Diversification Opportunities for DATANG INTL and Hays Plc
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DATANG and Hays is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW and Hays plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hays plc and DATANG INTL 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 DATANG INTL POW are associated (or correlated) with Hays Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hays plc has no effect on the direction of DATANG INTL i.e., DATANG INTL and Hays Plc go up and down completely randomly.
Pair Corralation between DATANG INTL and Hays Plc
Assuming the 90 days trading horizon DATANG INTL is expected to generate 4.66 times less return on investment than Hays Plc. But when comparing it to its historical volatility, DATANG INTL POW is 1.0 times less risky than Hays Plc. It trades about 0.02 of its potential returns per unit of risk. Hays plc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 93.00 in Hays plc on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Hays plc or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DATANG INTL POW vs. Hays plc
Performance |
| Timeline |
| DATANG INTL POW |
| Hays plc |
DATANG INTL and Hays Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Hays Plc
The main advantage of trading using opposite DATANG INTL and Hays Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL position performs unexpectedly, Hays Plc 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 Hays Plc will offset losses from the drop in Hays Plc's long position.| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
| Hays Plc vs. Postal Savings Bank | Hays Plc vs. EAT WELL INVESTMENT | Hays Plc vs. WisdomTree Investments | Hays Plc vs. Nok Airlines PCL |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |