Correlation Between HUTCHISON TELECOMM and Mitsui Chemicals
Can any of the company-specific risk be diversified away by investing in both HUTCHISON TELECOMM and Mitsui Chemicals 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 TELECOMM and Mitsui Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUTCHISON TELECOMM and Mitsui Chemicals, you can compare the effects of market volatilities on HUTCHISON TELECOMM and Mitsui Chemicals 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 TELECOMM with a short position of Mitsui Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUTCHISON TELECOMM and Mitsui Chemicals.
Diversification Opportunities for HUTCHISON TELECOMM and Mitsui Chemicals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUTCHISON and Mitsui is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HUTCHISON TELECOMM and Mitsui Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui Chemicals and HUTCHISON TELECOMM 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 TELECOMM are associated (or correlated) with Mitsui Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui Chemicals has no effect on the direction of HUTCHISON TELECOMM i.e., HUTCHISON TELECOMM and Mitsui Chemicals go up and down completely randomly.
Pair Corralation between HUTCHISON TELECOMM and Mitsui Chemicals
Assuming the 90 days trading horizon HUTCHISON TELECOMM is expected to under-perform the Mitsui Chemicals. In addition to that, HUTCHISON TELECOMM is 3.2 times more volatile than Mitsui Chemicals. It trades about 0.0 of its total potential returns per unit of risk. Mitsui Chemicals is currently generating about 0.0 per unit of volatility. If you would invest 2,220 in Mitsui Chemicals on November 9, 2024 and sell it today you would lose (160.00) from holding Mitsui Chemicals or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUTCHISON TELECOMM vs. Mitsui Chemicals
Performance |
| Timeline |
| HUTCHISON TELECOMM |
| Mitsui Chemicals |
HUTCHISON TELECOMM and Mitsui Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUTCHISON TELECOMM and Mitsui Chemicals
The main advantage of trading using opposite HUTCHISON TELECOMM and Mitsui Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUTCHISON TELECOMM position performs unexpectedly, Mitsui Chemicals 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 Mitsui Chemicals will offset losses from the drop in Mitsui Chemicals' long position.| HUTCHISON TELECOMM vs. BORR DRILLING NEW | HUTCHISON TELECOMM vs. Boyd Gaming | HUTCHISON TELECOMM vs. GAMESTOP | HUTCHISON TELECOMM vs. Scientific Games |
| Mitsui Chemicals vs. ALTAIR RES INC | Mitsui Chemicals vs. CAREER EDUCATION | Mitsui Chemicals vs. Alaska Air Group | Mitsui Chemicals vs. NORWEGIAN AIR SHUT |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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