Correlation Between Hongkong and Broadwind
Can any of the company-specific risk be diversified away by investing in both Hongkong and Broadwind 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 Hongkong and Broadwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hongkong and and Broadwind, you can compare the effects of market volatilities on Hongkong and Broadwind 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 Hongkong with a short position of Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong and Broadwind.
Diversification Opportunities for Hongkong and Broadwind
Good diversification
The 3 months correlation between Hongkong and Broadwind is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Hongkong and and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind and Hongkong 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 The Hongkong and are associated (or correlated) with Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of Hongkong i.e., Hongkong and Broadwind go up and down completely randomly.
Pair Corralation between Hongkong and Broadwind
Assuming the 90 days horizon The Hongkong and is expected to generate 0.47 times more return on investment than Broadwind. However, The Hongkong and is 2.15 times less risky than Broadwind. It trades about 0.1 of its potential returns per unit of risk. Broadwind is currently generating about 0.0 per unit of risk. If you would invest 64.00 in The Hongkong and on October 14, 2024 and sell it today you would earn a total of 8.00 from holding The Hongkong and or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hongkong and vs. Broadwind
Performance |
| Timeline |
| The Hongkong |
| Broadwind |
Hongkong and Broadwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongkong and Broadwind
The main advantage of trading using opposite Hongkong and Broadwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong position performs unexpectedly, Broadwind 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 Broadwind will offset losses from the drop in Broadwind's long position.| Hongkong vs. Marriott International | Hongkong vs. Hyatt Hotels | Hongkong vs. InterContinental Hotels Group | Hongkong vs. INTERCONT HOTELS |
| Broadwind vs. DETALION GAMES SA | Broadwind vs. Sunstone Hotel Investors | Broadwind vs. Choice Hotels International | Broadwind vs. The Hongkong and |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |