Correlation Between STANDARD CHARTERED and HORDS
Can any of the company-specific risk be diversified away by investing in both STANDARD CHARTERED and HORDS 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 STANDARD CHARTERED and HORDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STANDARD CHARTERED BANK and HORDS LTD, you can compare the effects of market volatilities on STANDARD CHARTERED and HORDS 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 STANDARD CHARTERED with a short position of HORDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD CHARTERED and HORDS.
Diversification Opportunities for STANDARD CHARTERED and HORDS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STANDARD and HORDS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD CHARTERED BANK and HORDS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HORDS LTD and STANDARD CHARTERED 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 STANDARD CHARTERED BANK are associated (or correlated) with HORDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HORDS LTD has no effect on the direction of STANDARD CHARTERED i.e., STANDARD CHARTERED and HORDS go up and down completely randomly.
Pair Corralation between STANDARD CHARTERED and HORDS
If you would invest 2,016 in STANDARD CHARTERED BANK on September 2, 2024 and sell it today you would earn a total of 284.00 from holding STANDARD CHARTERED BANK or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD CHARTERED BANK vs. HORDS LTD
Performance |
| Timeline |
| STANDARD CHARTERED BANK |
| HORDS LTD |
STANDARD CHARTERED and HORDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD CHARTERED and HORDS
The main advantage of trading using opposite STANDARD CHARTERED and HORDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD CHARTERED position performs unexpectedly, HORDS 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 HORDS will offset losses from the drop in HORDS's long position.The idea behind STANDARD CHARTERED BANK and HORDS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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