Correlation Between Hi Lai and TUL
Can any of the company-specific risk be diversified away by investing in both Hi Lai and TUL 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 TUL 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 TUL Corporation, you can compare the effects of market volatilities on Hi Lai and TUL 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 TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Lai and TUL.
Diversification Opportunities for Hi Lai and TUL
Average diversification
The 3 months correlation between 1268 and TUL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hi Lai Foods Co and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation 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 TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Hi Lai i.e., Hi Lai and TUL go up and down completely randomly.
Pair Corralation between Hi Lai and TUL
Assuming the 90 days trading horizon Hi Lai Foods Co is expected to generate 0.14 times more return on investment than TUL. However, Hi Lai Foods Co is 7.03 times less risky than TUL. It trades about -0.09 of its potential returns per unit of risk. TUL Corporation is currently generating about -0.14 per unit of risk. If you would invest 15,100 in Hi Lai Foods Co on September 15, 2024 and sell it today you would lose (100.00) from holding Hi Lai Foods Co or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Lai Foods Co vs. TUL Corp.
Performance |
| Timeline |
| Hi Lai Foods |
| TUL Corporation |
Hi Lai and TUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Lai and TUL
The main advantage of trading using opposite Hi Lai and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Lai position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL's long position.The idea behind Hi Lai Foods Co and TUL Corporation 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.| TUL vs. Davicom Semiconductor | TUL vs. Mospec Semiconductor Corp | TUL vs. Hi Lai Foods Co | TUL vs. Syntek Semiconductor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |