Correlation Between Twitter and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Twitter and Hong Kong 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 Twitter and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Hong Kong and, you can compare the effects of market volatilities on Twitter and Hong Kong 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 Twitter with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Hong Kong.
Diversification Opportunities for Twitter and Hong Kong
Modest diversification
The 3 months correlation between Twitter and Hong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Hong Kong and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong and Twitter 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 Twitter are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong has no effect on the direction of Twitter i.e., Twitter and Hong Kong go up and down completely randomly.
Pair Corralation between Twitter and Hong Kong
If you would invest 74.00 in Hong Kong and on January 26, 2024 and sell it today you would earn a total of 3.00 from holding Hong Kong and or generate 4.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Twitter vs. Hong Kong and
Performance |
Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hong Kong |
Twitter and Hong Kong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Twitter and Hong Kong
The main advantage of trading using opposite Twitter and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.Twitter vs. Mid Atlantic Home Health | Twitter vs. Planet Fitness | Twitter vs. JBG SMITH Properties | Twitter vs. Bassett Furniture Industries |
Hong Kong vs. Anhui Conch Cement | Hong Kong vs. Sysmex Corp | Hong Kong vs. PICC Property and | Hong Kong vs. Aquagold International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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