Correlation Between Eat Beyond and Hang Lung
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Hang Lung 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 Eat Beyond and Hang Lung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Beyond Global and Hang Lung Properties, you can compare the effects of market volatilities on Eat Beyond and Hang Lung 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 Eat Beyond with a short position of Hang Lung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Hang Lung.
Diversification Opportunities for Eat Beyond and Hang Lung
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Hang is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Hang Lung Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Lung Properties and Eat Beyond 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 Eat Beyond Global are associated (or correlated) with Hang Lung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Lung Properties has no effect on the direction of Eat Beyond i.e., Eat Beyond and Hang Lung go up and down completely randomly.
Pair Corralation between Eat Beyond and Hang Lung
Assuming the 90 days horizon Eat Beyond Global is expected to generate 8.38 times more return on investment than Hang Lung. However, Eat Beyond is 8.38 times more volatile than Hang Lung Properties. It trades about 0.08 of its potential returns per unit of risk. Hang Lung Properties is currently generating about -0.05 per unit of risk. If you would invest 11.00 in Eat Beyond Global on August 31, 2024 and sell it today you would lose (4.00) from holding Eat Beyond Global or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Eat Beyond Global vs. Hang Lung Properties
Performance |
| Timeline |
| Eat Beyond Global |
| Hang Lung Properties |
Eat Beyond and Hang Lung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Hang Lung
The main advantage of trading using opposite Eat Beyond and Hang Lung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Hang Lung 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 Hang Lung will offset losses from the drop in Hang Lung's long position.| Eat Beyond vs. Elysee Development Corp | Eat Beyond vs. Azimut Holding SpA | Eat Beyond vs. Ameritrans Capital Corp | Eat Beyond vs. Aimia Inc |
| Hang Lung vs. Ascendas India Trust | Hang Lung vs. Asia Pptys | Hang Lung vs. Adler Group SA | Hang Lung vs. Aztec Land Comb |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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