Correlation Between Hutchison Port and COSCO SHIPPING

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Can any of the company-specific risk be diversified away by investing in both Hutchison Port and COSCO SHIPPING 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 Port and COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hutchison Port Holdings and COSCO SHIPPING Development, you can compare the effects of market volatilities on Hutchison Port and COSCO SHIPPING 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 Port with a short position of COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hutchison Port and COSCO SHIPPING.

Diversification Opportunities for Hutchison Port and COSCO SHIPPING

HutchisonCOSCODiversified AwayHutchisonCOSCODiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hutchison and COSCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hutchison Port Holdings and COSCO SHIPPING Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Devel and Hutchison Port 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 Port Holdings are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Devel has no effect on the direction of Hutchison Port i.e., Hutchison Port and COSCO SHIPPING go up and down completely randomly.

Pair Corralation between Hutchison Port and COSCO SHIPPING

If you would invest  337.00  in Hutchison Port Holdings on November 27, 2024 and sell it today you would earn a total of  37.00  from holding Hutchison Port Holdings or generate 10.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Hutchison Port Holdings  vs.  COSCO SHIPPING Development

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-50510
JavaScript chart by amCharts 3.21.15HUPHY CITAF
       Timeline  
Hutchison Port Holdings 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hutchison Port Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical indicators, Hutchison Port showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.62.833.23.43.63.8
COSCO SHIPPING Devel 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days COSCO SHIPPING Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COSCO SHIPPING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hutchison Port and COSCO SHIPPING Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-20.87-15.63-10.39-5.150.09045.4210.8516.2721.69 0.0020.0040.0060.008
JavaScript chart by amCharts 3.21.15HUPHY CITAF
       Returns  

Pair Trading with Hutchison Port and COSCO SHIPPING

The main advantage of trading using opposite Hutchison Port and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hutchison Port position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.
The idea behind Hutchison Port Holdings and COSCO SHIPPING Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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