Correlation Between Hoasen and MST Investment
Can any of the company-specific risk be diversified away by investing in both Hoasen and MST Investment 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 Hoasen and MST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoasen Group and MST Investment JSC, you can compare the effects of market volatilities on Hoasen and MST Investment 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 Hoasen with a short position of MST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoasen and MST Investment.
Diversification Opportunities for Hoasen and MST Investment
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hoasen and MST is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hoasen Group and MST Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MST Investment JSC and Hoasen 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 Hoasen Group are associated (or correlated) with MST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MST Investment JSC has no effect on the direction of Hoasen i.e., Hoasen and MST Investment go up and down completely randomly.
Pair Corralation between Hoasen and MST Investment
Assuming the 90 days trading horizon Hoasen is expected to generate 1.15 times less return on investment than MST Investment. But when comparing it to its historical volatility, Hoasen Group is 1.22 times less risky than MST Investment. It trades about 0.06 of its potential returns per unit of risk. MST Investment JSC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 390,910 in MST Investment JSC on September 13, 2024 and sell it today you would earn a total of 289,090 from holding MST Investment JSC or generate 73.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoasen Group vs. MST Investment JSC
Performance |
| Timeline |
| Hoasen Group |
| MST Investment JSC |
Hoasen and MST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoasen and MST Investment
The main advantage of trading using opposite Hoasen and MST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoasen position performs unexpectedly, MST Investment 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 MST Investment will offset losses from the drop in MST Investment's long position.| Hoasen vs. MST Investment JSC | Hoasen vs. Hochiminh City Metal | Hoasen vs. Everland Investment JSC | Hoasen vs. LDG Investment JSC |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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