Correlation Between Hi Lai and EnTie Commercial
Can any of the company-specific risk be diversified away by investing in both Hi Lai and EnTie Commercial 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 Hi Lai and EnTie Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Lai Foods Co and EnTie Commercial Bank, you can compare the effects of market volatilities on Hi Lai and EnTie Commercial 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 Hi Lai with a short position of EnTie Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Lai and EnTie Commercial.
Diversification Opportunities for Hi Lai and EnTie Commercial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 1268 and EnTie is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hi Lai Foods Co and EnTie Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnTie Commercial Bank and Hi Lai 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 Hi Lai Foods Co are associated (or correlated) with EnTie Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnTie Commercial Bank has no effect on the direction of Hi Lai i.e., Hi Lai and EnTie Commercial go up and down completely randomly.
Pair Corralation between Hi Lai and EnTie Commercial
Assuming the 90 days trading horizon Hi Lai Foods Co is expected to under-perform the EnTie Commercial. But the stock apears to be less risky and, when comparing its historical volatility, Hi Lai Foods Co is 1.24 times less risky than EnTie Commercial. The stock trades about 0.0 of its potential returns per unit of risk. The EnTie Commercial Bank is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,425 in EnTie Commercial Bank on September 3, 2024 and sell it today you would earn a total of 45.00 from holding EnTie Commercial Bank or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Lai Foods Co vs. EnTie Commercial Bank
Performance |
| Timeline |
| Hi Lai Foods |
| EnTie Commercial Bank |
Hi Lai and EnTie Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Lai and EnTie Commercial
The main advantage of trading using opposite Hi Lai and EnTie Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Lai position performs unexpectedly, EnTie Commercial 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 EnTie Commercial will offset losses from the drop in EnTie Commercial's long position.| Hi Lai vs. Louisa Professional Coffee | Hi Lai vs. Ruentex Development Co | Hi Lai vs. Symtek Automation Asia | Hi Lai vs. CTCI Corp |
| EnTie Commercial vs. Central Reinsurance Corp | EnTie Commercial vs. Huaku Development Co | EnTie Commercial vs. Chailease Holding Co | EnTie Commercial vs. CTBC Financial Holding |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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