Correlation Between Hung Hau and Cuulong Fish
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Cuulong Fish 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 Hung Hau and Cuulong Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Hau Agricultural and Cuulong Fish JSC, you can compare the effects of market volatilities on Hung Hau and Cuulong Fish 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 Hung Hau with a short position of Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Cuulong Fish.
Diversification Opportunities for Hung Hau and Cuulong Fish
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hung and Cuulong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish JSC and Hung Hau 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 Hung Hau Agricultural are associated (or correlated) with Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of Hung Hau i.e., Hung Hau and Cuulong Fish go up and down completely randomly.
Pair Corralation between Hung Hau and Cuulong Fish
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 3.93 times more return on investment than Cuulong Fish. However, Hung Hau is 3.93 times more volatile than Cuulong Fish JSC. It trades about 0.01 of its potential returns per unit of risk. Cuulong Fish JSC is currently generating about -0.02 per unit of risk. If you would invest 1,259,225 in Hung Hau Agricultural on August 29, 2024 and sell it today you would lose (159,225) from holding Hung Hau Agricultural or give up 12.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.49% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Cuulong Fish JSC
Performance |
| Timeline |
| Hung Hau Agricultural |
| Cuulong Fish JSC |
Hung Hau and Cuulong Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Cuulong Fish
The main advantage of trading using opposite Hung Hau and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.| Hung Hau vs. Da Nang Construction | Hung Hau vs. Song Hong Aluminum | Hung Hau vs. Development Investment Construction | Hung Hau vs. Danang Education Investment |
| Cuulong Fish vs. DIC Holdings Construction | Cuulong Fish vs. Agriculture Printing and | Cuulong Fish vs. Hung Hau Agricultural | Cuulong Fish vs. Hochiminh City Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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