Correlation Between Hung Hau and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Techno Agricultural 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 Techno Agricultural 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 Techno Agricultural Supplying, you can compare the effects of market volatilities on Hung Hau and Techno Agricultural 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 Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Techno Agricultural.
Diversification Opportunities for Hung Hau and Techno Agricultural
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hung and Techno is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural 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 Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Hung Hau i.e., Hung Hau and Techno Agricultural go up and down completely randomly.
Pair Corralation between Hung Hau and Techno Agricultural
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 2.71 times more return on investment than Techno Agricultural. However, Hung Hau is 2.71 times more volatile than Techno Agricultural Supplying. It trades about 0.39 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.35 per unit of risk. If you would invest 980,000 in Hung Hau Agricultural on August 30, 2024 and sell it today you would earn a total of 120,000 from holding Hung Hau Agricultural or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.17% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Techno Agricultural Supplying
Performance |
| Timeline |
| Hung Hau Agricultural |
| Techno Agricultural |
Hung Hau and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Techno Agricultural
The main advantage of trading using opposite Hung Hau and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural's long position.| Hung Hau vs. PetroVietnam Transportation Corp | Hung Hau vs. Travel Investment and | Hung Hau vs. Nam Long Investment | Hung Hau vs. Ba Ria Thermal |
| Techno Agricultural vs. FIT INVEST JSC | Techno Agricultural vs. Damsan JSC | Techno Agricultural vs. An Phat Plastic | Techno Agricultural 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |