Correlation Between Hopewell Holdings and Acacia Pharma
Can any of the company-specific risk be diversified away by investing in both Hopewell Holdings and Acacia Pharma 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 Hopewell Holdings and Acacia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hopewell Holdings Limited and Acacia Pharma Group, you can compare the effects of market volatilities on Hopewell Holdings and Acacia Pharma 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 Hopewell Holdings with a short position of Acacia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hopewell Holdings and Acacia Pharma.
Diversification Opportunities for Hopewell Holdings and Acacia Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hopewell and Acacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hopewell Holdings Limited and Acacia Pharma Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acacia Pharma Group and Hopewell Holdings 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 Hopewell Holdings Limited are associated (or correlated) with Acacia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acacia Pharma Group has no effect on the direction of Hopewell Holdings i.e., Hopewell Holdings and Acacia Pharma go up and down completely randomly.
Pair Corralation between Hopewell Holdings and Acacia Pharma
If you would invest (100.00) in Acacia Pharma Group on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Acacia Pharma Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hopewell Holdings Limited vs. Acacia Pharma Group
Performance |
| Timeline |
| Hopewell Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acacia Pharma Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hopewell Holdings and Acacia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hopewell Holdings and Acacia Pharma
The main advantage of trading using opposite Hopewell Holdings and Acacia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hopewell Holdings position performs unexpectedly, Acacia Pharma 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 Acacia Pharma will offset losses from the drop in Acacia Pharma's long position.| Hopewell Holdings vs. Douglas Emmett | Hopewell Holdings vs. Bassett Furniture Industries | Hopewell Holdings vs. Seadrill Limited | Hopewell Holdings vs. Shelf Drilling |
| Acacia Pharma vs. Nike Inc | Acacia Pharma vs. Addus HomeCare | Acacia Pharma vs. Hudson Pacific Properties | Acacia Pharma vs. Merit Medical Systems |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world |