Correlation Between Hi Clearance and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Hi Clearance and Chi Sheng 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 Chi Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Clearance and Chi Sheng Chemical, you can compare the effects of market volatilities on Hi Clearance and Chi Sheng 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 Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Clearance and Chi Sheng.
Diversification Opportunities for Hi Clearance and Chi Sheng
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 1788 and Chi is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hi Clearance and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical 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 Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of Hi Clearance i.e., Hi Clearance and Chi Sheng go up and down completely randomly.
Pair Corralation between Hi Clearance and Chi Sheng
Assuming the 90 days trading horizon Hi Clearance is expected to generate 0.36 times more return on investment than Chi Sheng. However, Hi Clearance is 2.79 times less risky than Chi Sheng. It trades about 0.04 of its potential returns per unit of risk. Chi Sheng Chemical is currently generating about -0.04 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 Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Hi Clearance vs. Chi Sheng Chemical
Performance |
| Timeline |
| Hi Clearance |
| Chi Sheng Chemical |
Hi Clearance and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Clearance and Chi Sheng
The main advantage of trading using opposite Hi Clearance and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Clearance position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng'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 |
| Chi Sheng vs. Mechema Chemicals Int | Chi Sheng vs. Pontex Polyblend CoLtd | Chi Sheng vs. Insyde Software | Chi Sheng vs. Arbor 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 CEOs Directory module to screen CEOs from public companies around the world.
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