Correlation Between Airtac International and Hiwin Mikrosystem
Can any of the company-specific risk be diversified away by investing in both Airtac International and Hiwin Mikrosystem 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 Mikrosystem 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 Mikrosystem Corp, you can compare the effects of market volatilities on Airtac International and Hiwin Mikrosystem 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 Mikrosystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Hiwin Mikrosystem.
Diversification Opportunities for Airtac International and Hiwin Mikrosystem
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Airtac and Hiwin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Hiwin Mikrosystem Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiwin Mikrosystem 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 Mikrosystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiwin Mikrosystem Corp has no effect on the direction of Airtac International i.e., Airtac International and Hiwin Mikrosystem go up and down completely randomly.
Pair Corralation between Airtac International and Hiwin Mikrosystem
Assuming the 90 days trading horizon Airtac International Group is expected to under-perform the Hiwin Mikrosystem. But the stock apears to be less risky and, when comparing its historical volatility, Airtac International Group is 1.29 times less risky than Hiwin Mikrosystem. The stock trades about -0.02 of its potential returns per unit of risk. The Hiwin Mikrosystem Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,482 in Hiwin Mikrosystem Corp on August 29, 2024 and sell it today you would earn a total of 5,068 from holding Hiwin Mikrosystem Corp or generate 78.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airtac International Group vs. Hiwin Mikrosystem Corp
Performance |
| Timeline |
| Airtac International |
| Hiwin Mikrosystem Corp |
Airtac International and Hiwin Mikrosystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airtac International and Hiwin Mikrosystem
The main advantage of trading using opposite Airtac International and Hiwin Mikrosystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Hiwin Mikrosystem 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 Mikrosystem will offset losses from the drop in Hiwin Mikrosystem's long position.| Airtac International vs. Yulon Motor Co | Airtac International vs. Far Eastern Department | Airtac International vs. China Steel Corp | Airtac International vs. Chang Hwa Commercial |
| Hiwin Mikrosystem vs. Simplo Technology Co | Hiwin Mikrosystem vs. Dynapack International Technology | Hiwin Mikrosystem vs. Amtran Technology Co | Hiwin Mikrosystem vs. Allis Electric 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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