Correlation Between Hongkong and HAPAG-LLOYD UNSPADR

Can any of the company-specific risk be diversified away by investing in both Hongkong and HAPAG-LLOYD UNSPADR 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 and HAPAG-LLOYD UNSPADR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Hongkong and and HAPAG LLOYD UNSPADR 12, you can compare the effects of market volatilities on Hongkong and HAPAG-LLOYD UNSPADR 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 with a short position of HAPAG-LLOYD UNSPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong and HAPAG-LLOYD UNSPADR.

Diversification Opportunities for Hongkong and HAPAG-LLOYD UNSPADR

-0.13

Correlation Coefficient

Hongkong  HAPAG-LLOYD UNSPADR

Good diversification

The 3 months correlation between Hongkong and HAPAG-LLOYD is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Hongkong and and HAPAG LLOYD UNSPADR 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAPAG LLOYD UNSPADR and Hongkong 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 The Hongkong and are associated (or correlated) with HAPAG-LLOYD UNSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAPAG LLOYD UNSPADR has no effect on the direction of Hongkong i.e., Hongkong and HAPAG-LLOYD UNSPADR go up and down completely randomly.

Pair Corralation between Hongkong and HAPAG-LLOYD UNSPADR

Assuming the 90 days horizon Hongkong is expected to generate 13.57 times less return on investment than HAPAG-LLOYD UNSPADR. But when comparing it to its historical volatility, The Hongkong and is 1.51 times less risky than HAPAG-LLOYD UNSPADR. It trades about 0.0 of its potential returns per unit of risk. HAPAG LLOYD UNSPADR 12 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  7,258  in HAPAG LLOYD UNSPADR 12 on October 10, 2024 and sell it today you would earn a total of  542.00  from holding HAPAG LLOYD UNSPADR 12 or generate 7.47% return on investment over 90 days.

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

The Hongkong and  vs.  HAPAG LLOYD UNSPADR 12

The Hongkong

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hongkong and are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hongkong reported solid returns over the last few months and may actually be approaching a breakup point.

HAPAG LLOYD UNSPADR

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HAPAG LLOYD UNSPADR 12 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, HAPAG-LLOYD UNSPADR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hongkong and HAPAG-LLOYD UNSPADR

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

The idea behind The Hongkong and and HAPAG LLOYD UNSPADR 12 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.