Correlation Between IRSA Inversiones and Hang Lung

Can any of the company-specific risk be diversified away by investing in both IRSA Inversiones and Hang Lung 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 IRSA Inversiones and Hang Lung into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IRSA Inversiones Y and Hang Lung Properties, you can compare the effects of market volatilities on IRSA Inversiones and Hang Lung 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 IRSA Inversiones with a short position of Hang Lung. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRSA Inversiones and Hang Lung.

Diversification Opportunities for IRSA Inversiones and Hang Lung

-0.71

Correlation Coefficient

IRSA Inversiones  Hang Lung

Pay attention - limited upside

The 3 months correlation between IRSA and Hang is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and Hang Lung Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Lung Properties and IRSA Inversiones 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 IRSA Inversiones Y are associated (or correlated) with Hang Lung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Lung Properties has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and Hang Lung go up and down completely randomly.

Pair Corralation between IRSA Inversiones and Hang Lung

Considering the 90-day investment horizon IRSA Inversiones Y is expected to under-perform the Hang Lung. In addition to that, IRSA Inversiones is 1.87 times more volatile than Hang Lung Properties. It trades about -0.06 of its total potential returns per unit of risk. Hang Lung Properties is currently generating about 0.07 per unit of volatility. If you would invest  396.00  in Hang Lung Properties on December 27, 2024 and sell it today you would earn a total of  26.00  from holding Hang Lung Properties or generate 6.57% return on investment over 90 days.

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

IRSA Inversiones Y  vs.  Hang Lung Properties

IRSA Inversiones Y

Risk-Adjusted Performance

Very Weak

Over the last 90 days IRSA Inversiones Y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent 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.

Hang Lung Properties

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hang Lung Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Hang Lung may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IRSA Inversiones and Hang Lung

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

The idea behind IRSA Inversiones Y and Hang Lung Properties 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.