Correlation Between Hoang Huy and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Hoang Huy and Dow Jones 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 Hoang Huy and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoang Huy Investment and Dow Jones Industrial, you can compare the effects of market volatilities on Hoang Huy and Dow Jones 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 Hoang Huy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoang Huy and Dow Jones.
Diversification Opportunities for Hoang Huy and Dow Jones
Very weak diversification
The 3 months correlation between Hoang and Dow is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hoang Huy Investment and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Hoang Huy 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 Hoang Huy Investment are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Hoang Huy i.e., Hoang Huy and Dow Jones go up and down completely randomly.
Pair Corralation between Hoang Huy and Dow Jones
Assuming the 90 days trading horizon Hoang Huy Investment is expected to under-perform the Dow Jones. In addition to that, Hoang Huy is 1.66 times more volatile than Dow Jones Industrial. It trades about -0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.36 per unit of volatility. If you would invest 4,257,373 in Dow Jones Industrial on October 30, 2024 and sell it today you would earn a total of 213,985 from holding Dow Jones Industrial or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Hoang Huy Investment vs. Dow Jones Industrial
Performance |
| Timeline |
Hoang Huy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hoang Huy Investment
Pair trading matchups for Hoang Huy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hoang Huy and Dow Jones
The main advantage of trading using opposite Hoang Huy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoang Huy position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Hoang Huy vs. Petrolimex International Trading | Hoang Huy vs. MST Investment JSC | Hoang Huy vs. Thong Nhat Rubber | Hoang Huy vs. Southern Rubber Industry |
| Dow Jones vs. Snap On | Dow Jones vs. Hillman Solutions Corp | Dow Jones vs. RBC Bearings Incorporated | Dow Jones vs. Rocky Brands |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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