Correlation Between Oconee Financial and Hang Seng
Can any of the company-specific risk be diversified away by investing in both Oconee Financial and Hang Seng 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 Oconee Financial and Hang Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oconee Financial and Hang Seng Bank, you can compare the effects of market volatilities on Oconee Financial and Hang Seng 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 Oconee Financial with a short position of Hang Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Financial and Hang Seng.
Diversification Opportunities for Oconee Financial and Hang Seng
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oconee and Hang is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Financial and Hang Seng Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng Bank and Oconee Financial 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 Oconee Financial are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng Bank has no effect on the direction of Oconee Financial i.e., Oconee Financial and Hang Seng go up and down completely randomly.
Pair Corralation between Oconee Financial and Hang Seng
Given the investment horizon of 90 days Oconee Financial is expected to generate 0.68 times more return on investment than Hang Seng. However, Oconee Financial is 1.46 times less risky than Hang Seng. It trades about 0.03 of its potential returns per unit of risk. Hang Seng Bank is currently generating about 0.01 per unit of risk. If you would invest 3,469 in Oconee Financial on November 29, 2024 and sell it today you would earn a total of 441.00 from holding Oconee Financial or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Oconee Financial vs. Hang Seng Bank
Performance |
| Timeline |
| Oconee Financial |
| Hang Seng Bank |
Oconee Financial and Hang Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Financial and Hang Seng
The main advantage of trading using opposite Oconee Financial and Hang Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee Financial position performs unexpectedly, Hang Seng 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 Hang Seng will offset losses from the drop in Hang Seng's long position.| Oconee Financial vs. Pioneer Bankcorp | Oconee Financial vs. Liberty Northwest Bancorp | Oconee Financial vs. First Community | Oconee Financial vs. Coeur dAlene Bancorp |
| Hang Seng vs. Caixabank SA ADR | Hang Seng vs. Commercial International Bank | Hang Seng vs. PT Bank Rakyat | Hang Seng vs. Riverview Bancorp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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