Correlation Between Ha Long and South Books
Can any of the company-specific risk be diversified away by investing in both Ha Long and South Books 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 Ha Long and South Books into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and South Books Educational, you can compare the effects of market volatilities on Ha Long and South Books 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 Ha Long with a short position of South Books. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and South Books.
Diversification Opportunities for Ha Long and South Books
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HID and South is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and South Books Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Books Educational and Ha Long 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 Ha Long Investment are associated (or correlated) with South Books. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Books Educational has no effect on the direction of Ha Long i.e., Ha Long and South Books go up and down completely randomly.
Pair Corralation between Ha Long and South Books
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 0.52 times more return on investment than South Books. However, Ha Long Investment is 1.93 times less risky than South Books. It trades about -0.15 of its potential returns per unit of risk. South Books Educational is currently generating about -0.11 per unit of risk. If you would invest 273,000 in Ha Long Investment on August 31, 2024 and sell it today you would lose (6,000) from holding Ha Long Investment or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Ha Long Investment vs. South Books Educational
Performance |
| Timeline |
| Ha Long Investment |
| South Books Educational |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Ha Long and South Books Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and South Books
The main advantage of trading using opposite Ha Long and South Books positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, South Books 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 South Books will offset losses from the drop in South Books' long position.| Ha Long vs. Binhthuan Agriculture Services | Ha Long vs. Century Synthetic Fiber | Ha Long vs. Cotec Construction JSC | Ha Long vs. Transport and Industry |
| South Books vs. Ha Long Investment | South Books vs. Development Investment Construction | South Books vs. TDG Global Investment | South Books vs. Bich Chi Food |
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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