Correlation Between Hi Lai and Data International
Can any of the company-specific risk be diversified away by investing in both Hi Lai and Data International 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 Data International 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 Data International Co, you can compare the effects of market volatilities on Hi Lai and Data International 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 Data International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Lai and Data International.
Diversification Opportunities for Hi Lai and Data International
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 1268 and Data is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hi Lai Foods Co and Data International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data International 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 Data International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data International has no effect on the direction of Hi Lai i.e., Hi Lai and Data International go up and down completely randomly.
Pair Corralation between Hi Lai and Data International
Assuming the 90 days trading horizon Hi Lai is expected to generate 6.81 times less return on investment than Data International. But when comparing it to its historical volatility, Hi Lai Foods Co is 2.54 times less risky than Data International. It trades about 0.04 of its potential returns per unit of risk. Data International Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,629 in Data International Co on October 13, 2024 and sell it today you would earn a total of 9,271 from holding Data International Co or generate 352.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Lai Foods Co vs. Data International Co
Performance |
| Timeline |
| Hi Lai Foods |
| Data International |
Hi Lai and Data International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Lai and Data International
The main advantage of trading using opposite Hi Lai and Data International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Lai position performs unexpectedly, Data International 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 Data International will offset losses from the drop in Data International's long position.| Hi Lai vs. Datavan International | Hi Lai vs. Fortune Information Systems | Hi Lai vs. Quanta Storage | Hi Lai vs. Simple Mart Retail |
| Data International vs. Voltronic Power Technology | Data International vs. Space Shuttle Hi Tech | Data International vs. Hi Lai Foods Co | Data International vs. Min Aik Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |