Correlation Between Newmark and Hysan Development
Can any of the company-specific risk be diversified away by investing in both Newmark and Hysan Development 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 Newmark and Hysan Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newmark Group and Hysan Development Co, you can compare the effects of market volatilities on Newmark and Hysan Development 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 Newmark with a short position of Hysan Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newmark and Hysan Development.
Diversification Opportunities for Newmark and Hysan Development
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Newmark and Hysan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Newmark Group and Hysan Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hysan Development and Newmark 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 Newmark Group are associated (or correlated) with Hysan Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hysan Development has no effect on the direction of Newmark i.e., Newmark and Hysan Development go up and down completely randomly.
Pair Corralation between Newmark and Hysan Development
Given the investment horizon of 90 days Newmark Group is expected to generate 1.23 times more return on investment than Hysan Development. However, Newmark is 1.23 times more volatile than Hysan Development Co. It trades about 0.1 of its potential returns per unit of risk. Hysan Development Co is currently generating about -0.04 per unit of risk. If you would invest 658.00 in Newmark Group on August 31, 2024 and sell it today you would earn a total of 890.00 from holding Newmark Group or generate 135.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Newmark Group vs. Hysan Development Co
Performance |
| Timeline |
| Newmark Group |
| Hysan Development |
Newmark and Hysan Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newmark and Hysan Development
The main advantage of trading using opposite Newmark and Hysan Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newmark position performs unexpectedly, Hysan Development 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 Hysan Development will offset losses from the drop in Hysan Development's long position.| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
| Hysan Development vs. Hang Lung Properties | Hysan Development vs. Henderson Land Development | Hysan Development vs. New World Development | Hysan Development vs. Bank of East |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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