Correlation Between Hi Clearance and Feng Ching
Can any of the company-specific risk be diversified away by investing in both Hi Clearance and Feng Ching 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 Clearance and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Clearance and Feng Ching Metal, you can compare the effects of market volatilities on Hi Clearance and Feng Ching 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 Clearance with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Clearance and Feng Ching.
Diversification Opportunities for Hi Clearance and Feng Ching
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1788 and Feng is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hi Clearance and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and Hi Clearance 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 Clearance are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of Hi Clearance i.e., Hi Clearance and Feng Ching go up and down completely randomly.
Pair Corralation between Hi Clearance and Feng Ching
Assuming the 90 days trading horizon Hi Clearance is expected to generate 0.15 times more return on investment than Feng Ching. However, Hi Clearance is 6.76 times less risky than Feng Ching. It trades about 0.04 of its potential returns per unit of risk. Feng Ching Metal is currently generating about -0.03 per unit of risk. If you would invest 13,617 in Hi Clearance on September 1, 2024 and sell it today you would earn a total of 283.00 from holding Hi Clearance or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Hi Clearance vs. Feng Ching Metal
Performance |
| Timeline |
| Hi Clearance |
| Feng Ching Metal |
Hi Clearance and Feng Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Clearance and Feng Ching
The main advantage of trading using opposite Hi Clearance and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Clearance position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.| Hi Clearance vs. ECOVE Environment Corp | Hi Clearance vs. Onyx Healthcare | Hi Clearance vs. Healthconn Corp | Hi Clearance vs. Wei Chih Steel |
| Feng Ching vs. Intai Technology | Feng Ching vs. Microtips Technology | Feng Ching vs. Maxigen Biotech | Feng Ching vs. V Tac Technology 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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