Correlation Between Mena Transport and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Mena Transport and Halcyon Technology 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 Mena Transport and Halcyon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mena Transport Public and Halcyon Technology Public, you can compare the effects of market volatilities on Mena Transport and Halcyon Technology 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 Mena Transport with a short position of Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Halcyon Technology.
Diversification Opportunities for Mena Transport and Halcyon Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mena and Halcyon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon Technology Public and Mena Transport 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 Mena Transport Public are associated (or correlated) with Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Mena Transport i.e., Mena Transport and Halcyon Technology go up and down completely randomly.
Pair Corralation between Mena Transport and Halcyon Technology
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 0.69 times more return on investment than Halcyon Technology. However, Mena Transport Public is 1.45 times less risky than Halcyon Technology. It trades about 0.04 of its potential returns per unit of risk. Halcyon Technology Public is currently generating about -0.27 per unit of risk. If you would invest 122.00 in Mena Transport Public on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Mena Transport Public or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. Halcyon Technology Public
Performance |
| Timeline |
| Mena Transport Public |
| Halcyon Technology Public |
Mena Transport and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Halcyon Technology
The main advantage of trading using opposite Mena Transport and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport position performs unexpectedly, Halcyon Technology 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 Halcyon Technology will offset losses from the drop in Halcyon Technology's long position.| Mena Transport vs. Namyong Terminal PCL | Mena Transport vs. Hwa Fong Rubber | Mena Transport vs. Jay Mart Public | Mena Transport vs. IRPC Public |
| Halcyon Technology vs. Tata Steel Public | Halcyon Technology vs. Thaifoods Group Public | Halcyon Technology vs. TMT Steel Public | Halcyon Technology vs. The Erawan Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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