Correlation Between Hongkong Land and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Hongkong Land and ANTA SPORTS 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 Hongkong Land and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hongkong Land Holdings and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Hongkong Land and ANTA SPORTS 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 Hongkong Land with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong Land and ANTA SPORTS.
Diversification Opportunities for Hongkong Land and ANTA SPORTS
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hongkong and ANTA is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hongkong Land Holdings and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and Hongkong Land 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 Hongkong Land Holdings are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Hongkong Land i.e., Hongkong Land and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Hongkong Land and ANTA SPORTS
Assuming the 90 days horizon Hongkong Land Holdings is expected to generate 1.19 times more return on investment than ANTA SPORTS. However, Hongkong Land is 1.19 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.08 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.01 per unit of risk. If you would invest 360.00 in Hongkong Land Holdings on October 20, 2024 and sell it today you would earn a total of 46.00 from holding Hongkong Land Holdings or generate 12.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hongkong Land Holdings vs. ANTA SPORTS PRODUCT
Performance |
Timeline |
Hongkong Land Holdings |
ANTA SPORTS PRODUCT |
Hongkong Land and ANTA SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hongkong Land and ANTA SPORTS
The main advantage of trading using opposite Hongkong Land and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong Land position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.Hongkong Land vs. Sun Hung Kai | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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