Correlation Between Hiwin Technologies and Hiwin Mikrosystem
Can any of the company-specific risk be diversified away by investing in both Hiwin Technologies 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 Hiwin Technologies and Hiwin Mikrosystem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiwin Technologies Corp and Hiwin Mikrosystem Corp, you can compare the effects of market volatilities on Hiwin Technologies 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 Hiwin Technologies with a short position of Hiwin Mikrosystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiwin Technologies and Hiwin Mikrosystem.
Diversification Opportunities for Hiwin Technologies and Hiwin Mikrosystem
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hiwin and Hiwin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hiwin Technologies Corp 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 Hiwin Technologies 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 Hiwin Technologies Corp 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 Hiwin Technologies i.e., Hiwin Technologies and Hiwin Mikrosystem go up and down completely randomly.
Pair Corralation between Hiwin Technologies and Hiwin Mikrosystem
Assuming the 90 days trading horizon Hiwin Technologies is expected to generate 2.69 times less return on investment than Hiwin Mikrosystem. But when comparing it to its historical volatility, Hiwin Technologies Corp is 1.67 times less risky than Hiwin Mikrosystem. It trades about 0.06 of its potential returns per unit of risk. Hiwin Mikrosystem Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,450 in Hiwin Mikrosystem Corp on August 29, 2024 and sell it today you would earn a total of 2,100 from holding Hiwin Mikrosystem Corp or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hiwin Technologies Corp vs. Hiwin Mikrosystem Corp
Performance |
| Timeline |
| Hiwin Technologies Corp |
| Hiwin Mikrosystem Corp |
Hiwin Technologies and Hiwin Mikrosystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hiwin Technologies and Hiwin Mikrosystem
The main advantage of trading using opposite Hiwin Technologies and Hiwin Mikrosystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiwin Technologies 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.| Hiwin Technologies vs. Airtac International Group | Hiwin Technologies vs. Delta Electronics | Hiwin Technologies vs. LARGAN Precision Co | Hiwin Technologies vs. Advantech Co |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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