Correlation Between Hong Kong and Amedeo Air
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Amedeo Air 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 Amedeo Air 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 Amedeo Air Four, you can compare the effects of market volatilities on Hong Kong and Amedeo Air 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 Amedeo Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Amedeo Air.
Diversification Opportunities for Hong Kong and Amedeo Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Amedeo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Amedeo Air Four in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedeo Air Four 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 Amedeo Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedeo Air Four has no effect on the direction of Hong Kong i.e., Hong Kong and Amedeo Air go up and down completely randomly.
Pair Corralation between Hong Kong and Amedeo Air
Assuming the 90 days trading horizon Hong Kong is expected to generate 10.72 times less return on investment than Amedeo Air. But when comparing it to its historical volatility, Hong Kong Land is 7.0 times less risky than Amedeo Air. It trades about 0.08 of its potential returns per unit of risk. Amedeo Air Four is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,636 in Amedeo Air Four on September 12, 2024 and sell it today you would earn a total of 1,784 from holding Amedeo Air Four or generate 49.06% 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. Amedeo Air Four
Performance |
| Timeline |
| Hong Kong Land |
| Amedeo Air Four |
Hong Kong and Amedeo Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Amedeo Air
The main advantage of trading using opposite Hong Kong and Amedeo Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Amedeo Air 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 Amedeo Air will offset losses from the drop in Amedeo Air's long position.| Hong Kong vs. Wheaton Precious Metals | Hong Kong vs. Universal Display Corp | Hong Kong vs. Zoom Video Communications | Hong Kong vs. Cornish Metals |
| Amedeo Air vs. Hong Kong Land | Amedeo Air vs. Neometals | Amedeo Air vs. Coor Service Management | Amedeo Air vs. Fidelity Sustainable USD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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