Correlation Between Hi Clearance and Shih Kuen
Can any of the company-specific risk be diversified away by investing in both Hi Clearance and Shih Kuen 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 Shih Kuen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Clearance and Shih Kuen Plastics, you can compare the effects of market volatilities on Hi Clearance and Shih Kuen 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 Shih Kuen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Clearance and Shih Kuen.
Diversification Opportunities for Hi Clearance and Shih Kuen
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 1788 and Shih is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hi Clearance and Shih Kuen Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shih Kuen Plastics 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 Shih Kuen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shih Kuen Plastics has no effect on the direction of Hi Clearance i.e., Hi Clearance and Shih Kuen go up and down completely randomly.
Pair Corralation between Hi Clearance and Shih Kuen
Assuming the 90 days trading horizon Hi Clearance is expected to generate 0.22 times more return on investment than Shih Kuen. However, Hi Clearance is 4.46 times less risky than Shih Kuen. It trades about 0.06 of its potential returns per unit of risk. Shih Kuen Plastics is currently generating about -0.18 per unit of risk. If you would invest 13,850 in Hi Clearance on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Hi Clearance or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Clearance vs. Shih Kuen Plastics
Performance |
| Timeline |
| Hi Clearance |
| Shih Kuen Plastics |
Hi Clearance and Shih Kuen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Clearance and Shih Kuen
The main advantage of trading using opposite Hi Clearance and Shih Kuen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Clearance position performs unexpectedly, Shih Kuen 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 Shih Kuen will offset losses from the drop in Shih Kuen's long position.| Hi Clearance vs. Shih Kuen Plastics | Hi Clearance vs. Univacco Technology | Hi Clearance vs. Daxin Materials Corp | Hi Clearance vs. Gloria Material Technology |
| Shih Kuen vs. Cheng Shin Rubber | Shih Kuen vs. Nankang Rubber Tire | Shih Kuen vs. Asia Polymer Corp | Shih Kuen vs. Ocean Plastics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |