Correlation Between HUTCHISON TELECOMM and GOING PUBL

Can any of the company-specific risk be diversified away by investing in both HUTCHISON TELECOMM and GOING PUBL 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 HUTCHISON TELECOMM and GOING PUBL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HUTCHISON TELECOMM and GOING PUBL MEDIA, you can compare the effects of market volatilities on HUTCHISON TELECOMM and GOING PUBL 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 HUTCHISON TELECOMM with a short position of GOING PUBL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUTCHISON TELECOMM and GOING PUBL.

Diversification Opportunities for HUTCHISON TELECOMM and GOING PUBL

-0.1

Correlation Coefficient

HUTCHISON TELECOMM  GOING PUBL

Good diversification

The 3 months correlation between HUTCHISON and GOING is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding HUTCHISON TELECOMM and GOING PUBL MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOING PUBL MEDIA and HUTCHISON TELECOMM 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 HUTCHISON TELECOMM are associated (or correlated) with GOING PUBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOING PUBL MEDIA has no effect on the direction of HUTCHISON TELECOMM i.e., HUTCHISON TELECOMM and GOING PUBL go up and down completely randomly.

Pair Corralation between HUTCHISON TELECOMM and GOING PUBL

Assuming the 90 days trading horizon HUTCHISON TELECOMM is expected to under-perform the GOING PUBL. In addition to that, HUTCHISON TELECOMM is 2.55 times more volatile than GOING PUBL MEDIA. It trades about -0.01 of its total potential returns per unit of risk. GOING PUBL MEDIA is currently generating about 0.27 per unit of volatility. If you would invest  415.00  in GOING PUBL MEDIA on October 23, 2024 and sell it today you would earn a total of  38.00  from holding GOING PUBL MEDIA or generate 9.16% return on investment over 90 days.

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

HUTCHISON TELECOMM  vs.  GOING PUBL MEDIA

HUTCHISON TELECOMM

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HUTCHISON TELECOMM are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, HUTCHISON TELECOMM may actually be approaching a critical reversion point that can send shares even higher in February 2025.

GOING PUBL MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile 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.

Pair Trading with HUTCHISON TELECOMM and GOING PUBL

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

The idea behind HUTCHISON TELECOMM and GOING PUBL MEDIA 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.