Correlation Between HB Technology and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both HB Technology and NewFlex Technology 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 HB Technology and NewFlex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HB Technology TD and NewFlex Technology Co, you can compare the effects of market volatilities on HB Technology and NewFlex Technology 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 HB Technology with a short position of NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and NewFlex Technology.
Diversification Opportunities for HB Technology and NewFlex Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 078150 and NewFlex is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology and HB 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 HB Technology TD are associated (or correlated) with NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of HB Technology i.e., HB Technology and NewFlex Technology go up and down completely randomly.
Pair Corralation between HB Technology and NewFlex Technology
Assuming the 90 days trading horizon HB Technology TD is expected to generate 0.9 times more return on investment than NewFlex Technology. However, HB Technology TD is 1.11 times less risky than NewFlex Technology. It trades about 0.16 of its potential returns per unit of risk. NewFlex Technology Co is currently generating about 0.05 per unit of risk. If you would invest 197,000 in HB Technology TD on October 28, 2024 and sell it today you would earn a total of 51,500 from holding HB Technology TD or generate 26.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. NewFlex Technology Co
Performance |
| Timeline |
| HB Technology TD |
| NewFlex Technology |
HB Technology and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and NewFlex Technology
The main advantage of trading using opposite HB Technology and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| HB Technology vs. Adaptive Plasma Technology | HB Technology vs. NewFlex Technology Co | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd |
| NewFlex Technology vs. Samsung Electronics Co | NewFlex Technology vs. Samsung Electronics Co | NewFlex Technology vs. SK Hynix | NewFlex Technology vs. HMM Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |