Correlation Between Hung Hau and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Hung Hau and LDG Investment 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 LDG Investment 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 LDG Investment JSC, you can compare the effects of market volatilities on Hung Hau and LDG Investment 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 LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and LDG Investment.
Diversification Opportunities for Hung Hau and LDG Investment
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hung and LDG is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment 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 LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Hung Hau i.e., Hung Hau and LDG Investment go up and down completely randomly.
Pair Corralation between Hung Hau and LDG Investment
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 5.82 times more return on investment than LDG Investment. However, Hung Hau is 5.82 times more volatile than LDG Investment JSC. It trades about 0.25 of its potential returns per unit of risk. LDG Investment JSC is currently generating about -0.33 per unit of risk. If you would invest 1,060,000 in Hung Hau Agricultural on November 1, 2024 and sell it today you would earn a total of 90,000 from holding Hung Hau Agricultural or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.11% |
| Values | Daily Returns |
Hung Hau Agricultural vs. LDG Investment JSC
Performance |
| Timeline |
| Hung Hau Agricultural |
| LDG Investment JSC |
Hung Hau and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and LDG Investment
The main advantage of trading using opposite Hung Hau and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| Hung Hau vs. Ba Ria Thermal | Hung Hau vs. CEO Group JSC | Hung Hau vs. Pha Le Plastics | Hung Hau vs. Tay Ninh Rubber |
| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. APG Securities Joint |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |