Correlation Between Hong Kong and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Atresmedia 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 Atresmedia 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 Atresmedia, you can compare the effects of market volatilities on Hong Kong and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Atresmedia.
Diversification Opportunities for Hong Kong and Atresmedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Atresmedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Hong Kong i.e., Hong Kong and Atresmedia go up and down completely randomly.
Pair Corralation between Hong Kong and Atresmedia
Assuming the 90 days trading horizon Hong Kong Land is expected to generate 0.06 times more return on investment than Atresmedia. However, Hong Kong Land is 15.49 times less risky than Atresmedia. It trades about 0.09 of its potential returns per unit of risk. Atresmedia is currently generating about -0.01 per unit of risk. If you would invest 735.00 in Hong Kong Land on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Hong Kong Land or generate 0.82% 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. Atresmedia
Performance |
| Timeline |
| Hong Kong Land |
| Atresmedia |
Hong Kong and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Atresmedia
The main advantage of trading using opposite Hong Kong and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia'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 |
| Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Hyundai Motor | Atresmedia vs. Reliance Industries Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |