Correlation Between Ascendas India and Hang Lung
Can any of the company-specific risk be diversified away by investing in both Ascendas India and Hang Lung 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 Ascendas India and Hang Lung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas India Trust and Hang Lung Properties, you can compare the effects of market volatilities on Ascendas India and Hang Lung 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 Ascendas India with a short position of Hang Lung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas India and Hang Lung.
Diversification Opportunities for Ascendas India and Hang Lung
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascendas and Hang is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas India Trust and Hang Lung Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Lung Properties and Ascendas India 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 Ascendas India Trust are associated (or correlated) with Hang Lung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Lung Properties has no effect on the direction of Ascendas India i.e., Ascendas India and Hang Lung go up and down completely randomly.
Pair Corralation between Ascendas India and Hang Lung
Assuming the 90 days horizon Ascendas India Trust is expected to under-perform the Hang Lung. In addition to that, Ascendas India is 1.33 times more volatile than Hang Lung Properties. It trades about -0.01 of its total potential returns per unit of risk. Hang Lung Properties is currently generating about 0.0 per unit of volatility. If you would invest 417.00 in Hang Lung Properties on December 1, 2024 and sell it today you would lose (4.00) from holding Hang Lung Properties or give up 0.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 80.0% |
Values | Daily Returns |
Ascendas India Trust vs. Hang Lung Properties
Performance |
Timeline |
Ascendas India Trust |
Hang Lung Properties |
Ascendas India and Hang Lung Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ascendas India and Hang Lung
The main advantage of trading using opposite Ascendas India and Hang Lung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas India position performs unexpectedly, Hang Lung 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 Hang Lung will offset losses from the drop in Hang Lung's long position.Ascendas India vs. Asia Pptys | Ascendas India vs. Aztec Land Comb | Ascendas India vs. Ambase Corp | Ascendas India vs. Bridgemarq Real Estate |
Hang Lung vs. Ascendas India Trust | Hang Lung vs. Asia Pptys | Hang Lung vs. Aztec Land Comb | Hang Lung vs. Ambase Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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