Correlation Between Holiday Island and Longfor Group
Can any of the company-specific risk be diversified away by investing in both Holiday Island and Longfor Group 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 Holiday Island and Longfor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holiday Island Holdings and Longfor Group Holdings, you can compare the effects of market volatilities on Holiday Island and Longfor Group 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 Holiday Island with a short position of Longfor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holiday Island and Longfor Group.
Diversification Opportunities for Holiday Island and Longfor Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Holiday and Longfor is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Holiday Island Holdings and Longfor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longfor Group Holdings and Holiday Island 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 Holiday Island Holdings are associated (or correlated) with Longfor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longfor Group Holdings has no effect on the direction of Holiday Island i.e., Holiday Island and Longfor Group go up and down completely randomly.
Pair Corralation between Holiday Island and Longfor Group
If you would invest 2.32 in Holiday Island Holdings on September 5, 2024 and sell it today you would lose (0.81) from holding Holiday Island Holdings or give up 34.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Holiday Island Holdings vs. Longfor Group Holdings
Performance |
| Timeline |
| Holiday Island Holdings |
| Longfor Group Holdings |
Holiday Island and Longfor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holiday Island and Longfor Group
The main advantage of trading using opposite Holiday Island and Longfor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holiday Island position performs unexpectedly, Longfor Group 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 Longfor Group will offset losses from the drop in Longfor Group's long position.| Holiday Island vs. Hong Kong Land | Holiday Island vs. Wharf Holdings | Holiday Island vs. Sun Hung Kai | Holiday Island vs. Bayport International Holdings |
| Longfor Group vs. China Overseas Land | Longfor Group vs. Sun Hung Kai | Longfor Group vs. Country Garden Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |