Correlation Between Hung Hau and Din Capital
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Din Capital 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 Din Capital 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 Din Capital Investment, you can compare the effects of market volatilities on Hung Hau and Din Capital 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 Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Din Capital.
Diversification Opportunities for Hung Hau and Din Capital
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hung and Din is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment 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 Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Hung Hau i.e., Hung Hau and Din Capital go up and down completely randomly.
Pair Corralation between Hung Hau and Din Capital
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to under-perform the Din Capital. In addition to that, Hung Hau is 2.28 times more volatile than Din Capital Investment. It trades about -0.01 of its total potential returns per unit of risk. Din Capital Investment is currently generating about 0.06 per unit of volatility. If you would invest 930,000 in Din Capital Investment on August 28, 2024 and sell it today you would earn a total of 50,000 from holding Din Capital Investment or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.19% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Din Capital Investment
Performance |
| Timeline |
| Hung Hau Agricultural |
| Din Capital Investment |
Hung Hau and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Din Capital
The main advantage of trading using opposite Hung Hau and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| Hung Hau vs. Da Nang Construction | Hung Hau vs. Song Hong Aluminum | Hung Hau vs. South Books Educational | Hung Hau vs. Development Investment Construction |
| Din Capital vs. Hai An Transport | Din Capital vs. Dinhvu Port Investment | Din Capital vs. MST Investment JSC | Din Capital vs. Pacific Petroleum Transportation |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |