Correlation Between Hai An and Investment
Can any of the company-specific risk be diversified away by investing in both Hai An and Investment 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 Hai An and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and Investment And Construction, you can compare the effects of market volatilities on Hai An and Investment 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 Hai An with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Investment.
Diversification Opportunities for Hai An and Investment
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hai and Investment is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const and Hai An 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 Hai An Transport are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Hai An i.e., Hai An and Investment go up and down completely randomly.
Pair Corralation between Hai An and Investment
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.43 times more return on investment than Investment. However, Hai An Transport is 2.32 times less risky than Investment. It trades about 0.0 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.03 per unit of risk. If you would invest 4,960,000 in Hai An Transport on October 11, 2024 and sell it today you would lose (10,000) from holding Hai An Transport or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hai An Transport vs. Investment And Construction
Performance |
| Timeline |
| Hai An Transport |
| Investment And Const |
Hai An and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and Investment
The main advantage of trading using opposite Hai An and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Hai An vs. Petrolimex Information Technology | Hai An vs. Transport and Industry | Hai An vs. Fecon Mining JSC | Hai An vs. Song Hong Aluminum |
| Investment vs. Telecoms Informatics JSC | Investment vs. South Basic Chemicals | Investment vs. Elcom Technology Communications | Investment vs. Truong Thanh Furniture |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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