Correlation Between Aspen Technology and Hutchison Port

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and Hutchison Port 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 Aspen Technology and Hutchison Port into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and Hutchison Port Holdings, you can compare the effects of market volatilities on Aspen Technology and Hutchison Port 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 Aspen Technology with a short position of Hutchison Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and Hutchison Port.

Diversification Opportunities for Aspen Technology and Hutchison Port

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Aspen and Hutchison is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and Hutchison Port Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hutchison Port Holdings and Aspen Technology 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 Aspen Technology are associated (or correlated) with Hutchison Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hutchison Port Holdings has no effect on the direction of Aspen Technology i.e., Aspen Technology and Hutchison Port go up and down completely randomly.

Pair Corralation between Aspen Technology and Hutchison Port

Given the investment horizon of 90 days Aspen Technology is expected to generate 14.36 times less return on investment than Hutchison Port. But when comparing it to its historical volatility, Aspen Technology is 1.91 times less risky than Hutchison Port. It trades about 0.02 of its potential returns per unit of risk. Hutchison Port Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  16.00  in Hutchison Port Holdings on September 9, 2022 and sell it today you would earn a total of  2.00  from holding Hutchison Port Holdings or generate 12.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Aspen Technology  vs.  Hutchison Port Holdings

 Performance (%) 
       Timeline  
Aspen Technology 
Aspen Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Aspen Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Aspen Technology is not utilizing all of its potentials. The new stock price mess, may contribute to short-term losses for the institutional investors.

Aspen Price Channel

Hutchison Port Holdings 
Hutchison Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hutchison Port Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hutchison Port is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Hutchison Price Channel

Aspen Technology and Hutchison Port Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aspen Technology and Hutchison Port

The main advantage of trading using opposite Aspen Technology and Hutchison Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, Hutchison Port 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 Hutchison Port will offset losses from the drop in Hutchison Port's long position.
Aspen Technology vs. Yum Brands
Aspen Technology vs. Autogrill SpA
Aspen Technology vs. Collins Foods Limited
Aspen Technology vs. Dominos Pizza Group
The idea behind Aspen Technology and Hutchison Port Holdings 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.
Hutchison Port vs. Publicis Groupe SA
Hutchison Port vs. Cliq Digital AG
Hutchison Port vs. Kemira Oyj
Hutchison Port vs. IMCD NV
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go