Correlation Between HUSI11 and ASA METROPOLIS
Can any of the company-specific risk be diversified away by investing in both HUSI11 and ASA METROPOLIS 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 HUSI11 and ASA METROPOLIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUSI11 and ASA METROPOLIS FUNDO, you can compare the effects of market volatilities on HUSI11 and ASA METROPOLIS 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 HUSI11 with a short position of ASA METROPOLIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUSI11 and ASA METROPOLIS.
Diversification Opportunities for HUSI11 and ASA METROPOLIS
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUSI11 and ASA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HUSI11 and ASA METROPOLIS FUNDO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA METROPOLIS FUNDO and HUSI11 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 HUSI11 are associated (or correlated) with ASA METROPOLIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA METROPOLIS FUNDO has no effect on the direction of HUSI11 i.e., HUSI11 and ASA METROPOLIS go up and down completely randomly.
Pair Corralation between HUSI11 and ASA METROPOLIS
Assuming the 90 days trading horizon HUSI11 is expected to generate 8.83 times less return on investment than ASA METROPOLIS. In addition to that, HUSI11 is 1.68 times more volatile than ASA METROPOLIS FUNDO. It trades about 0.03 of its total potential returns per unit of risk. ASA METROPOLIS FUNDO is currently generating about 0.41 per unit of volatility. If you would invest 2,718 in ASA METROPOLIS FUNDO on December 4, 2024 and sell it today you would earn a total of 882.00 from holding ASA METROPOLIS FUNDO or generate 32.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUSI11 vs. ASA METROPOLIS FUNDO
Performance |
| Timeline |
| HUSI11 |
| ASA METROPOLIS FUNDO |
HUSI11 and ASA METROPOLIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUSI11 and ASA METROPOLIS
The main advantage of trading using opposite HUSI11 and ASA METROPOLIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUSI11 position performs unexpectedly, ASA METROPOLIS 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 ASA METROPOLIS will offset losses from the drop in ASA METROPOLIS's long position.| HUSI11 vs. BTG Pactual Logstica | HUSI11 vs. Btg Pactual Real | HUSI11 vs. Fundo Investimento Imobiliario | HUSI11 vs. KILIMA VOLKANO RECEBVEIS |
| ASA METROPOLIS vs. BTG Pactual Logstica | ASA METROPOLIS vs. Btg Pactual Real | ASA METROPOLIS vs. Fundo Investimento Imobiliario | ASA METROPOLIS vs. KILIMA VOLKANO RECEBVEIS |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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