Correlation Between Hung Sheng and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and Fu Burg 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 Sheng and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Sheng Construction and Fu Burg Industrial, you can compare the effects of market volatilities on Hung Sheng and Fu Burg 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 Sheng with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and Fu Burg.
Diversification Opportunities for Hung Sheng and Fu Burg
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hung and 8929 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and Hung Sheng 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 Sheng Construction are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Hung Sheng i.e., Hung Sheng and Fu Burg go up and down completely randomly.
Pair Corralation between Hung Sheng and Fu Burg
Assuming the 90 days trading horizon Hung Sheng is expected to generate 2.03 times less return on investment than Fu Burg. But when comparing it to its historical volatility, Hung Sheng Construction is 1.49 times less risky than Fu Burg. It trades about 0.02 of its potential returns per unit of risk. Fu Burg Industrial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,055 in Fu Burg Industrial on September 26, 2024 and sell it today you would earn a total of 530.00 from holding Fu Burg Industrial or generate 25.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hung Sheng Construction vs. Fu Burg Industrial
Performance |
Timeline |
Hung Sheng Construction |
Fu Burg Industrial |
Hung Sheng and Fu Burg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hung Sheng and Fu Burg
The main advantage of trading using opposite Hung Sheng and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.Hung Sheng vs. Chainqui Construction Development | Hung Sheng vs. BES Engineering Co | Hung Sheng vs. Long Bon International | Hung Sheng vs. Sincere Navigation Corp |
Fu Burg vs. Asmedia Technology | Fu Burg vs. Arbor Technology | Fu Burg vs. Hung Sheng Construction | Fu Burg vs. Promise Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |