Correlation Between HK Electric and RESMINING UNSPADR10
Can any of the company-specific risk be diversified away by investing in both HK Electric and RESMINING UNSPADR10 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 HK Electric and RESMINING UNSPADR10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Electric Investments and RESMINING UNSPADR10, you can compare the effects of market volatilities on HK Electric and RESMINING UNSPADR10 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 HK Electric with a short position of RESMINING UNSPADR10. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Electric and RESMINING UNSPADR10.
Diversification Opportunities for HK Electric and RESMINING UNSPADR10
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HKT and RESMINING is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding HK Electric Investments and RESMINING UNSPADR10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RESMINING UNSPADR10 and HK Electric 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 HK Electric Investments are associated (or correlated) with RESMINING UNSPADR10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RESMINING UNSPADR10 has no effect on the direction of HK Electric i.e., HK Electric and RESMINING UNSPADR10 go up and down completely randomly.
Pair Corralation between HK Electric and RESMINING UNSPADR10
Assuming the 90 days trading horizon HK Electric is expected to generate 5.89 times less return on investment than RESMINING UNSPADR10. But when comparing it to its historical volatility, HK Electric Investments is 2.71 times less risky than RESMINING UNSPADR10. It trades about 0.06 of its potential returns per unit of risk. RESMINING UNSPADR10 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 462.00 in RESMINING UNSPADR10 on September 11, 2025 and sell it today you would earn a total of 133.00 from holding RESMINING UNSPADR10 or generate 28.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HK Electric Investments vs. RESMINING UNSPADR10
Performance |
| Timeline |
| HK Electric Investments |
| RESMINING UNSPADR10 |
HK Electric and RESMINING UNSPADR10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Electric and RESMINING UNSPADR10
The main advantage of trading using opposite HK Electric and RESMINING UNSPADR10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Electric position performs unexpectedly, RESMINING UNSPADR10 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 RESMINING UNSPADR10 will offset losses from the drop in RESMINING UNSPADR10's long position.| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc |
| RESMINING UNSPADR10 vs. Adtalem Global Education | RESMINING UNSPADR10 vs. STRAYER EDUCATION | RESMINING UNSPADR10 vs. Xinhua Winshare Publishing | RESMINING UNSPADR10 vs. American Public Education |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |