Correlation Between Everland Investment and Hoasen
Can any of the company-specific risk be diversified away by investing in both Everland Investment and Hoasen 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 Everland Investment and Hoasen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everland Investment JSC and Hoasen Group, you can compare the effects of market volatilities on Everland Investment and Hoasen 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 Everland Investment with a short position of Hoasen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everland Investment and Hoasen.
Diversification Opportunities for Everland Investment and Hoasen
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Everland and Hoasen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Everland Investment JSC and Hoasen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoasen Group and Everland Investment 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 Everland Investment JSC are associated (or correlated) with Hoasen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoasen Group has no effect on the direction of Everland Investment i.e., Everland Investment and Hoasen go up and down completely randomly.
Pair Corralation between Everland Investment and Hoasen
Assuming the 90 days trading horizon Everland Investment JSC is expected to generate 1.63 times more return on investment than Hoasen. However, Everland Investment is 1.63 times more volatile than Hoasen Group. It trades about -0.01 of its potential returns per unit of risk. Hoasen Group is currently generating about -0.17 per unit of risk. If you would invest 665,000 in Everland Investment JSC on September 13, 2024 and sell it today you would lose (14,000) from holding Everland Investment JSC or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everland Investment JSC vs. Hoasen Group
Performance |
| Timeline |
| Everland Investment JSC |
| Hoasen Group |
Everland Investment and Hoasen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everland Investment and Hoasen
The main advantage of trading using opposite Everland Investment and Hoasen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everland Investment position performs unexpectedly, Hoasen 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 Hoasen will offset losses from the drop in Hoasen's long position.| Everland Investment vs. Vinhomes JSC | Everland Investment vs. PostTelecommunication Equipment | Everland Investment vs. Truong Thanh Furniture | Everland Investment vs. Mobile World Investment |
| Hoasen vs. MST Investment JSC | Hoasen vs. Hochiminh City Metal | Hoasen vs. Everland Investment JSC | Hoasen vs. LDG Investment JSC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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