Correlation Between Hi Clearance and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Hi Clearance and SS Healthcare 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 SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Clearance and SS Healthcare Holding, you can compare the effects of market volatilities on Hi Clearance and SS Healthcare 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 SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Clearance and SS Healthcare.
Diversification Opportunities for Hi Clearance and SS Healthcare
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1788 and 4198 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hi Clearance and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding 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 SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Hi Clearance i.e., Hi Clearance and SS Healthcare go up and down completely randomly.
Pair Corralation between Hi Clearance and SS Healthcare
Assuming the 90 days trading horizon Hi Clearance is expected to generate 0.26 times more return on investment than SS Healthcare. However, Hi Clearance is 3.91 times less risky than SS Healthcare. It trades about 0.3 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about 0.05 per unit of risk. If you would invest 14,200 in Hi Clearance on November 28, 2024 and sell it today you would earn a total of 300.00 from holding Hi Clearance or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Clearance vs. SS Healthcare Holding
Performance |
| Timeline |
| Hi Clearance |
| SS Healthcare Holding |
Hi Clearance and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Clearance and SS Healthcare
The main advantage of trading using opposite Hi Clearance and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Clearance position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Hi Clearance vs. Shieh Yih Machinery | Hi Clearance vs. Fong Chien Construction | Hi Clearance vs. Tehmag Foods | Hi Clearance vs. China Times Publishing |
| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Delta Asia International | SS Healthcare vs. Hi Clearance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |