Correlation Between Hong Kong and Power Assets

Can any of the company-specific risk be diversified away by investing in both Hong Kong and Power Assets 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 Hong Kong and Power Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hong Kong And and Power Assets Holdings, you can compare the effects of market volatilities on Hong Kong and Power Assets 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 Hong Kong with a short position of Power Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Power Assets.

Diversification Opportunities for Hong Kong and Power Assets

0.0

Correlation Coefficient

Hong Kong  Power Assets

Pay attention - limited upside

The 3 months correlation between Hong and Power is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong And and Power Assets Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Assets Holdings and Hong Kong 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 Hong Kong And are associated (or correlated) with Power Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Assets Holdings has no effect on the direction of Hong Kong i.e., Hong Kong and Power Assets go up and down completely randomly.

Pair Corralation between Hong Kong and Power Assets

If you would invest  71.00  in Hong Kong And on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Hong Kong And or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Hong Kong And  vs.  Power Assets Holdings

Hong Kong And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hong Kong And has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Hong Kong is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Power Assets Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Power Assets Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Power Assets is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hong Kong and Power Assets

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

The idea behind Hong Kong And and Power Assets Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..