Correlation Between Hi Lai and Voltronic Power
Can any of the company-specific risk be diversified away by investing in both Hi Lai and Voltronic Power 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 Voltronic Power 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 Voltronic Power Technology, you can compare the effects of market volatilities on Hi Lai and Voltronic Power 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 Voltronic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Lai and Voltronic Power.
Diversification Opportunities for Hi Lai and Voltronic Power
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 1268 and Voltronic is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hi Lai Foods Co and Voltronic Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voltronic Power Tech 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 Voltronic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voltronic Power Tech has no effect on the direction of Hi Lai i.e., Hi Lai and Voltronic Power go up and down completely randomly.
Pair Corralation between Hi Lai and Voltronic Power
Assuming the 90 days trading horizon Hi Lai Foods Co is expected to generate 0.18 times more return on investment than Voltronic Power. However, Hi Lai Foods Co is 5.55 times less risky than Voltronic Power. It trades about -0.25 of its potential returns per unit of risk. Voltronic Power Technology is currently generating about -0.2 per unit of risk. If you would invest 15,500 in Hi Lai Foods Co on August 25, 2024 and sell it today you would lose (400.00) from holding Hi Lai Foods Co or give up 2.58% of portfolio value 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. Voltronic Power Technology
Performance |
| Timeline |
| Hi Lai Foods |
| Voltronic Power Tech |
Hi Lai and Voltronic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Lai and Voltronic Power
The main advantage of trading using opposite Hi Lai and Voltronic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Lai position performs unexpectedly, Voltronic Power 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 Voltronic Power will offset losses from the drop in Voltronic Power's long position.| Hi Lai vs. Voltronic Power Technology | Hi Lai vs. Microtips Technology | Hi Lai vs. Shuang Bang Industrial | Hi Lai vs. Baotek Industrial Materials |
| Voltronic Power vs. Walsin Lihwa Corp | Voltronic Power vs. Simplo Technology Co | Voltronic Power vs. Ta Ya Electric | Voltronic Power vs. Dynapack International 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |