Correlation Between Hong Kong and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Fidelity Sustainable 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 Fidelity Sustainable 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 Fidelity Sustainable USD, you can compare the effects of market volatilities on Hong Kong and Fidelity Sustainable 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 Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Fidelity Sustainable.
Diversification Opportunities for Hong Kong and Fidelity Sustainable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Fidelity Sustainable USD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable USD 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 Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable USD has no effect on the direction of Hong Kong i.e., Hong Kong and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between Hong Kong and Fidelity Sustainable
Assuming the 90 days trading horizon Hong Kong is expected to generate 2.18 times less return on investment than Fidelity Sustainable. But when comparing it to its historical volatility, Hong Kong Land is 2.54 times less risky than Fidelity Sustainable. It trades about 0.08 of its potential returns per unit of risk. Fidelity Sustainable USD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Fidelity Sustainable USD on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Fidelity Sustainable USD or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hong Kong Land vs. Fidelity Sustainable USD
Performance |
| Timeline |
| Hong Kong Land |
| Fidelity Sustainable USD |
Hong Kong and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Fidelity Sustainable
The main advantage of trading using opposite Hong Kong and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable'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 |
| Fidelity Sustainable vs. GraniteShares 3x Short | Fidelity Sustainable vs. WisdomTree Natural Gas | Fidelity Sustainable vs. Leverage Shares 3x | Fidelity Sustainable vs. WisdomTree Natural Gas |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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