Correlation Between Hong Kong and CLP Holdings
Can any of the company-specific risk be diversified away by investing in both Hong Kong and CLP Holdings 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 CLP Holdings 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 CLP Holdings, you can compare the effects of market volatilities on Hong Kong and CLP Holdings 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 CLP Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and CLP Holdings.
Diversification Opportunities for Hong Kong and CLP Holdings
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hong and CLP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong and and CLP Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLP Holdings 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 CLP Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLP Holdings has no effect on the direction of Hong Kong i.e., Hong Kong and CLP Holdings go up and down completely randomly.
Pair Corralation between Hong Kong and CLP Holdings
Assuming the 90 days horizon Hong Kong and is expected to under-perform the CLP Holdings. In addition to that, Hong Kong is 6.73 times more volatile than CLP Holdings. It trades about -0.05 of its total potential returns per unit of risk. CLP Holdings is currently generating about 0.0 per unit of volatility. If you would invest 844.00 in CLP Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CLP Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong and vs. CLP Holdings
Performance |
| Timeline |
| Hong Kong |
| CLP Holdings |
Hong Kong and CLP Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and CLP Holdings
The main advantage of trading using opposite Hong Kong and CLP Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, CLP Holdings 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 CLP Holdings will offset losses from the drop in CLP Holdings' long position.| Hong Kong vs. Henderson Land Development | Hong Kong vs. CLP Holdings | Hong Kong vs. Power Assets Holdings | Hong Kong vs. Hang Lung Properties |
| CLP Holdings vs. Southern Company | CLP Holdings vs. Duke Energy | CLP Holdings vs. Duke Energy | CLP Holdings vs. National Grid 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |