Correlation Between Hutchison Telecommunicatio and Aumake
Can any of the company-specific risk be diversified away by investing in both Hutchison Telecommunicatio and Aumake 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 Hutchison Telecommunicatio and Aumake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hutchison Telecommunications and Aumake, you can compare the effects of market volatilities on Hutchison Telecommunicatio and Aumake 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 Hutchison Telecommunicatio with a short position of Aumake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hutchison Telecommunicatio and Aumake.
Diversification Opportunities for Hutchison Telecommunicatio and Aumake
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hutchison and Aumake is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hutchison Telecommunications and Aumake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aumake and Hutchison Telecommunicatio 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 Hutchison Telecommunications are associated (or correlated) with Aumake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aumake has no effect on the direction of Hutchison Telecommunicatio i.e., Hutchison Telecommunicatio and Aumake go up and down completely randomly.
Pair Corralation between Hutchison Telecommunicatio and Aumake
Assuming the 90 days trading horizon Hutchison Telecommunicatio is expected to generate 9.21 times less return on investment than Aumake. But when comparing it to its historical volatility, Hutchison Telecommunications is 2.19 times less risky than Aumake. It trades about 0.02 of its potential returns per unit of risk. Aumake is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Aumake on September 14, 2024 and sell it today you would earn a total of 0.20 from holding Aumake or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hutchison Telecommunications vs. Aumake
Performance |
| Timeline |
| Hutchison Telecommunicatio |
| Aumake |
Hutchison Telecommunicatio and Aumake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hutchison Telecommunicatio and Aumake
The main advantage of trading using opposite Hutchison Telecommunicatio and Aumake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hutchison Telecommunicatio position performs unexpectedly, Aumake 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 Aumake will offset losses from the drop in Aumake's long position.| Hutchison Telecommunicatio vs. Aneka Tambang Tbk | Hutchison Telecommunicatio vs. BHP Group Limited | Hutchison Telecommunicatio vs. Commonwealth Bank | Hutchison Telecommunicatio vs. Commonwealth Bank of |
| Aumake vs. Aneka Tambang Tbk | Aumake vs. Commonwealth Bank of | Aumake vs. Australia and New | Aumake vs. ANZ Group Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |