Correlation Between Actinogen Medical and Hutchison Telecommunicatio

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Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Hutchison Telecommunicatio 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 Actinogen Medical and Hutchison Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Hutchison Telecommunications, you can compare the effects of market volatilities on Actinogen Medical and Hutchison Telecommunicatio 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 Actinogen Medical with a short position of Hutchison Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Hutchison Telecommunicatio.

Diversification Opportunities for Actinogen Medical and Hutchison Telecommunicatio

ActinogenHutchisonDiversified AwayActinogenHutchisonDiversified Away100%
-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Actinogen and Hutchison is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Hutchison Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hutchison Telecommunicatio and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Hutchison Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hutchison Telecommunicatio has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Hutchison Telecommunicatio go up and down completely randomly.

Pair Corralation between Actinogen Medical and Hutchison Telecommunicatio

Assuming the 90 days trading horizon Actinogen Medical is expected to generate 1.22 times more return on investment than Hutchison Telecommunicatio. However, Actinogen Medical is 1.22 times more volatile than Hutchison Telecommunications. It trades about 0.16 of its potential returns per unit of risk. Hutchison Telecommunications is currently generating about -0.04 per unit of risk. If you would invest  2.30  in Actinogen Medical on November 15, 2024 and sell it today you would earn a total of  1.00  from holding Actinogen Medical or generate 43.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.36%
ValuesDaily Returns

Actinogen Medical  vs.  Hutchison Telecommunications

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -100102030
JavaScript chart by amCharts 3.21.15ACW HTA
       Timeline  
Actinogen Medical 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Actinogen Medical are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Actinogen Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0240.0260.0280.030.0320.034
Hutchison Telecommunicatio 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Hutchison Telecommunications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0240.02450.0250.02550.0260.02650.0270.02750.028

Actinogen Medical and Hutchison Telecommunicatio Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.33-9.98-6.64-3.290.05583.547.1510.7514.35 0.0150.0200.0250.030
JavaScript chart by amCharts 3.21.15ACW HTA
       Returns  

Pair Trading with Actinogen Medical and Hutchison Telecommunicatio

The main advantage of trading using opposite Actinogen Medical and Hutchison Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Hutchison Telecommunicatio 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 Hutchison Telecommunicatio will offset losses from the drop in Hutchison Telecommunicatio's long position.
The idea behind Actinogen Medical and Hutchison Telecommunications 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.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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