Correlation Between Brogent Technologies and Huang Hsiang

Can any of the company-specific risk be diversified away by investing in both Brogent Technologies and Huang Hsiang 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 Brogent Technologies and Huang Hsiang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brogent Technologies and Huang Hsiang Construction, you can compare the effects of market volatilities on Brogent Technologies and Huang Hsiang 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 Brogent Technologies with a short position of Huang Hsiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brogent Technologies and Huang Hsiang.

Diversification Opportunities for Brogent Technologies and Huang Hsiang

-0.48

Correlation Coefficient

Brogent Technologies  Huang Hsiang

Very good diversification

The 3 months correlation between Brogent and Huang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Brogent Technologies and Huang Hsiang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huang Hsiang Construction and Brogent Technologies 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 Brogent Technologies are associated (or correlated) with Huang Hsiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huang Hsiang Construction has no effect on the direction of Brogent Technologies i.e., Brogent Technologies and Huang Hsiang go up and down completely randomly.

Pair Corralation between Brogent Technologies and Huang Hsiang

Assuming the 90 days trading horizon Brogent Technologies is expected to generate 2.34 times less return on investment than Huang Hsiang. In addition to that, Brogent Technologies is 1.09 times more volatile than Huang Hsiang Construction. It trades about 0.02 of its total potential returns per unit of risk. Huang Hsiang Construction is currently generating about 0.06 per unit of volatility. If you would invest  4,030  in Huang Hsiang Construction on October 2, 2024 and sell it today you would earn a total of  2,440  from holding Huang Hsiang Construction or generate 60.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Brogent Technologies  vs.  Huang Hsiang Construction

Brogent Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brogent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Huang Hsiang Construction

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Huang Hsiang Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Huang Hsiang may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Brogent Technologies and Huang Hsiang

The main advantage of trading using opposite Brogent Technologies and Huang Hsiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brogent Technologies position performs unexpectedly, Huang Hsiang 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 Huang Hsiang will offset losses from the drop in Huang Hsiang's long position.

The idea behind Brogent Technologies and Huang Hsiang Construction pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.