Correlation Between SCG Construction and Hung Hau
Can any of the company-specific risk be diversified away by investing in both SCG Construction and Hung Hau 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 SCG Construction and Hung Hau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG Construction JSC and Hung Hau Agricultural, you can compare the effects of market volatilities on SCG Construction and Hung Hau 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 SCG Construction with a short position of Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG Construction and Hung Hau.
Diversification Opportunities for SCG Construction and Hung Hau
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SCG and Hung is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SCG Construction JSC and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural and SCG Construction 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 SCG Construction JSC are associated (or correlated) with Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of SCG Construction i.e., SCG Construction and Hung Hau go up and down completely randomly.
Pair Corralation between SCG Construction and Hung Hau
Assuming the 90 days trading horizon SCG Construction JSC is expected to generate 0.06 times more return on investment than Hung Hau. However, SCG Construction JSC is 16.35 times less risky than Hung Hau. It trades about 0.09 of its potential returns per unit of risk. Hung Hau Agricultural is currently generating about -0.01 per unit of risk. If you would invest 6,510,000 in SCG Construction JSC on November 11, 2024 and sell it today you would earn a total of 70,000 from holding SCG Construction JSC or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.54% |
| Values | Daily Returns |
SCG Construction JSC vs. Hung Hau Agricultural
Performance |
| Timeline |
| SCG Construction JSC |
| Hung Hau Agricultural |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
SCG Construction and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG Construction and Hung Hau
The main advantage of trading using opposite SCG Construction and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG Construction position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau's long position.| SCG Construction vs. Construction And Investment | SCG Construction vs. Elcom Technology Communications | SCG Construction vs. MST Investment JSC | SCG Construction vs. Hochiminh City Metal |
| Hung Hau vs. Fecon Mining JSC | Hung Hau vs. Ha Noi Education | Hung Hau vs. Elcom Technology Communications | Hung Hau vs. Phuoc Hoa Rubber |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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