Correlation Between Futu Holdings and Haitong Securities
Can any of the company-specific risk be diversified away by investing in both Futu Holdings and Haitong Securities 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 Futu Holdings and Haitong Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Futu Holdings and Haitong Securities Co, you can compare the effects of market volatilities on Futu Holdings and Haitong Securities 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 Futu Holdings with a short position of Haitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Futu Holdings and Haitong Securities.
Diversification Opportunities for Futu Holdings and Haitong Securities
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Futu and Haitong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Futu Holdings and Haitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitong Securities and Futu Holdings 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 Futu Holdings are associated (or correlated) with Haitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitong Securities has no effect on the direction of Futu Holdings i.e., Futu Holdings and Haitong Securities go up and down completely randomly.
Pair Corralation between Futu Holdings and Haitong Securities
Given the investment horizon of 90 days Futu Holdings is expected to generate 1.46 times more return on investment than Haitong Securities. However, Futu Holdings is 1.46 times more volatile than Haitong Securities Co. It trades about 0.29 of its potential returns per unit of risk. Haitong Securities Co is currently generating about 0.01 per unit of risk. If you would invest 7,946 in Futu Holdings on November 3, 2024 and sell it today you would earn a total of 1,719 from holding Futu Holdings or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Futu Holdings vs. Haitong Securities Co
Performance |
| Timeline |
| Futu Holdings |
| Haitong Securities |
Futu Holdings and Haitong Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Futu Holdings and Haitong Securities
The main advantage of trading using opposite Futu Holdings and Haitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Futu Holdings position performs unexpectedly, Haitong Securities 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 Haitong Securities will offset losses from the drop in Haitong Securities' long position.| Futu Holdings vs. Bit Digital | Futu Holdings vs. Xp Inc | Futu Holdings vs. Magic Empire Global | Futu Holdings vs. Applied Digital |
| Haitong Securities vs. SPENN Technology AS | Haitong Securities vs. Arcane Crypto AB | Haitong Securities vs. OFX Group Ltd | Haitong Securities vs. GreenBank Capital |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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