Correlation Between Hengan Intl and Endeavour Group
Can any of the company-specific risk be diversified away by investing in both Hengan Intl and Endeavour Group 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 Hengan Intl and Endeavour Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hengan Intl Group and Endeavour Group Limited, you can compare the effects of market volatilities on Hengan Intl and Endeavour Group 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 Hengan Intl with a short position of Endeavour Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengan Intl and Endeavour Group.
Diversification Opportunities for Hengan Intl and Endeavour Group
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hengan and Endeavour is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hengan Intl Group and Endeavour Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Group and Hengan Intl 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 Hengan Intl Group are associated (or correlated) with Endeavour Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Group has no effect on the direction of Hengan Intl i.e., Hengan Intl and Endeavour Group go up and down completely randomly.
Pair Corralation between Hengan Intl and Endeavour Group
Assuming the 90 days horizon Hengan Intl Group is expected to generate 1.35 times more return on investment than Endeavour Group. However, Hengan Intl is 1.35 times more volatile than Endeavour Group Limited. It trades about 0.07 of its potential returns per unit of risk. Endeavour Group Limited is currently generating about -0.07 per unit of risk. If you would invest 339.00 in Hengan Intl Group on August 25, 2025 and sell it today you would earn a total of 51.00 from holding Hengan Intl Group or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Hengan Intl Group vs. Endeavour Group Limited
Performance |
| Timeline |
| Hengan Intl Group |
| Endeavour Group |
Hengan Intl and Endeavour Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengan Intl and Endeavour Group
The main advantage of trading using opposite Hengan Intl and Endeavour Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengan Intl position performs unexpectedly, Endeavour Group 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 Endeavour Group will offset losses from the drop in Endeavour Group's long position.| Hengan Intl vs. Endeavour Group Limited | Hengan Intl vs. Treasury Wine Estates | Hengan Intl vs. Socit BIC SA | Hengan Intl vs. Kuala Lumpur Kepong |
| Endeavour Group vs. Treasury Wine Estates | Endeavour Group vs. Treasury Wine Estates | Endeavour Group vs. Hengan Intl Group | Endeavour Group vs. Becle SA de |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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