Correlation Between Hyrican Informationssyst and SUN HUNG
Can any of the company-specific risk be diversified away by investing in both Hyrican Informationssyst and SUN HUNG 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 Hyrican Informationssyst and SUN HUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyrican Informationssysteme Aktiengesellschaft and SUN HUNG KAI, you can compare the effects of market volatilities on Hyrican Informationssyst and SUN HUNG 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 Hyrican Informationssyst with a short position of SUN HUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and SUN HUNG.
Diversification Opportunities for Hyrican Informationssyst and SUN HUNG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hyrican and SUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and SUN HUNG KAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN HUNG KAI and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft are associated (or correlated) with SUN HUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN HUNG KAI has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and SUN HUNG go up and down completely randomly.
Pair Corralation between Hyrican Informationssyst and SUN HUNG
If you would invest 850.00 in SUN HUNG KAI on November 28, 2024 and sell it today you would earn a total of 25.00 from holding SUN HUNG KAI or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Hyrican Informationssysteme Ak vs. SUN HUNG KAI
Performance |
| Timeline |
| Hyrican Informationssyst |
| SUN HUNG KAI |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Hyrican Informationssyst and SUN HUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyrican Informationssyst and SUN HUNG
The main advantage of trading using opposite Hyrican Informationssyst and SUN HUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyrican Informationssyst position performs unexpectedly, SUN HUNG 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 SUN HUNG will offset losses from the drop in SUN HUNG's long position.| Hyrican Informationssyst vs. SAFEROADS HLDGS | Hyrican Informationssyst vs. Genscript Biotech | Hyrican Informationssyst vs. Yuexiu Transport Infrastructure | Hyrican Informationssyst vs. ROYAL ROAD MIN |
| SUN HUNG vs. Sixt Leasing SE | SUN HUNG vs. ePlay Digital | SUN HUNG vs. Lendlease Group | SUN HUNG vs. ANTA Sports Products |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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