Correlation Between Hong Kong and SM Energy
Can any of the company-specific risk be diversified away by investing in both Hong Kong and SM Energy 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 SM Energy 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 SM Energy Co, you can compare the effects of market volatilities on Hong Kong and SM Energy 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 SM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and SM Energy.
Diversification Opportunities for Hong Kong and SM Energy
Pay attention - limited upside
The 3 months correlation between Hong and 0KZA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and SM Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM Energy 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 SM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Energy has no effect on the direction of Hong Kong i.e., Hong Kong and SM Energy go up and down completely randomly.
Pair Corralation between Hong Kong and SM Energy
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. SM Energy Co
Performance |
| Timeline |
| Hong Kong Land |
| SM Energy |
Hong Kong and SM Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and SM Energy
The main advantage of trading using opposite Hong Kong and SM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, SM Energy 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 SM Energy will offset losses from the drop in SM Energy'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 |
| SM Energy vs. Fonix Mobile plc | SM Energy vs. Park Hotels Resorts | SM Energy vs. Intermediate Capital Group | SM Energy vs. Flutter Entertainment 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |