Correlation Between Hudson Pacific and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Hudson Pacific and YanGuFang International 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 Hudson Pacific and YanGuFang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Pacific Properties and YanGuFang International Group, you can compare the effects of market volatilities on Hudson Pacific and YanGuFang International 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 Hudson Pacific with a short position of YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Pacific and YanGuFang International.
Diversification Opportunities for Hudson Pacific and YanGuFang International
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hudson and YanGuFang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Pacific Properties and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International and Hudson Pacific 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 Hudson Pacific Properties are associated (or correlated) with YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Hudson Pacific i.e., Hudson Pacific and YanGuFang International go up and down completely randomly.
Pair Corralation between Hudson Pacific and YanGuFang International
Considering the 90-day investment horizon Hudson Pacific Properties is expected to generate 0.26 times more return on investment than YanGuFang International. However, Hudson Pacific Properties is 3.82 times less risky than YanGuFang International. It trades about -0.09 of its potential returns per unit of risk. YanGuFang International Group is currently generating about -0.22 per unit of risk. If you would invest 863.00 in Hudson Pacific Properties on September 14, 2024 and sell it today you would lose (542.00) from holding Hudson Pacific Properties or give up 62.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 42.97% |
| Values | Daily Returns |
Hudson Pacific Properties vs. YanGuFang International Group
Performance |
| Timeline |
| Hudson Pacific Properties |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hudson Pacific and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Pacific and YanGuFang International
The main advantage of trading using opposite Hudson Pacific and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Pacific position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International's long position.| Hudson Pacific vs. Kilroy Realty Corp | Hudson Pacific vs. Highwoods Properties | Hudson Pacific vs. Cousins Properties Incorporated | Hudson Pacific vs. Piedmont Office Realty |
| YanGuFang International vs. Harmony Gold Mining | YanGuFang International vs. Emerson Electric | YanGuFang International vs. Tritent International Agriculture | YanGuFang International vs. Summit Materials |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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