Correlation Between Hong Kong and Snam SpA
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Snam SpA 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 Snam SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong And and Snam SpA ADR, you can compare the effects of market volatilities on Hong Kong and Snam SpA 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 Snam SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Snam SpA.
Diversification Opportunities for Hong Kong and Snam SpA
Very good diversification
The 3 months correlation between Hong and Snam is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong And and Snam SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snam SpA ADR 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 And are associated (or correlated) with Snam SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snam SpA ADR has no effect on the direction of Hong Kong i.e., Hong Kong and Snam SpA go up and down completely randomly.
Pair Corralation between Hong Kong and Snam SpA
If you would invest 893.00 in Snam SpA ADR on October 22, 2024 and sell it today you would earn a total of 33.00 from holding Snam SpA ADR or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.56% |
| Values | Daily Returns |
Hong Kong And vs. Snam SpA ADR
Performance |
| Timeline |
| Hong Kong And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Snam SpA ADR |
Hong Kong and Snam SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Snam SpA
The main advantage of trading using opposite Hong Kong and Snam SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Snam SpA 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 Snam SpA will offset losses from the drop in Snam SpA's long position.| Hong Kong vs. Hong Kong and | Hong Kong vs. China Life Insurance | Hong Kong vs. Henderson Land Development | Hong Kong vs. Fortum Oyj ADR |
| Snam SpA vs. Northwest Natural Gas | Snam SpA vs. NewJersey Resources | Snam SpA vs. Atmos Energy | Snam SpA vs. Suburban Propane Partners |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |