Correlation Between Hong Kong and Cincinnati Financial
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Cincinnati Financial 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 Hong Kong and Cincinnati Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and Cincinnati Financial Corp, you can compare the effects of market volatilities on Hong Kong and Cincinnati Financial 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 Hong Kong with a short position of Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Cincinnati Financial.
Diversification Opportunities for Hong Kong and Cincinnati Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Cincinnati is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Cincinnati Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial Corp and Hong Kong 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 Hong Kong Land are associated (or correlated) with Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial Corp has no effect on the direction of Hong Kong i.e., Hong Kong and Cincinnati Financial go up and down completely randomly.
Pair Corralation between Hong Kong and Cincinnati Financial
If you would invest 741.00 in Hong Kong Land on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Hong Kong Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Land vs. Cincinnati Financial Corp
Performance |
| Timeline |
| Hong Kong Land |
| Cincinnati Financial Corp |
Hong Kong and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Cincinnati Financial
The main advantage of trading using opposite Hong Kong and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Cincinnati Financial 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 Cincinnati Financial will offset losses from the drop in Cincinnati Financial's long position.| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
| Cincinnati Financial vs. Discover Financial Services | Cincinnati Financial vs. Ally Financial | Cincinnati Financial vs. OneSavings Bank PLC | Cincinnati Financial vs. Aeorema Communications Plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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