Correlation Between Airtac International and Hiwin Technologies
Can any of the company-specific risk be diversified away by investing in both Airtac International and Hiwin Technologies 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 Airtac International and Hiwin Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airtac International Group and Hiwin Technologies Corp, you can compare the effects of market volatilities on Airtac International and Hiwin Technologies 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 Airtac International with a short position of Hiwin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Hiwin Technologies.
Diversification Opportunities for Airtac International and Hiwin Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Airtac and Hiwin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Hiwin Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiwin Technologies Corp and Airtac International 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 Airtac International Group are associated (or correlated) with Hiwin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiwin Technologies Corp has no effect on the direction of Airtac International i.e., Airtac International and Hiwin Technologies go up and down completely randomly.
Pair Corralation between Airtac International and Hiwin Technologies
Assuming the 90 days trading horizon Airtac International Group is expected to under-perform the Hiwin Technologies. In addition to that, Airtac International is 1.11 times more volatile than Hiwin Technologies Corp. It trades about -0.01 of its total potential returns per unit of risk. Hiwin Technologies Corp is currently generating about 0.02 per unit of volatility. If you would invest 22,450 in Hiwin Technologies Corp on August 28, 2024 and sell it today you would earn a total of 1,600 from holding Hiwin Technologies Corp or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airtac International Group vs. Hiwin Technologies Corp
Performance |
| Timeline |
| Airtac International |
| Hiwin Technologies Corp |
Airtac International and Hiwin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airtac International and Hiwin Technologies
The main advantage of trading using opposite Airtac International and Hiwin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Hiwin Technologies 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 Hiwin Technologies will offset losses from the drop in Hiwin Technologies' long position.| Airtac International vs. Sunny Friend Environmental | Airtac International vs. TTET Union Corp | Airtac International vs. ECOVE Environment Corp | Airtac International vs. Yulon Finance Corp |
| Hiwin Technologies vs. Airtac International Group | Hiwin Technologies vs. Delta Electronics | Hiwin Technologies vs. LARGAN Precision Co | Hiwin Technologies vs. Advantech 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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