Correlation Between Clevo and Hu Lane
Can any of the company-specific risk be diversified away by investing in both Clevo and Hu Lane 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 Clevo and Hu Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Hu Lane Associate, you can compare the effects of market volatilities on Clevo and Hu Lane 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 Clevo with a short position of Hu Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Hu Lane.
Diversification Opportunities for Clevo and Hu Lane
Modest diversification
The 3 months correlation between Clevo and 6279 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Hu Lane Associate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hu Lane Associate and Clevo 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 Clevo Co are associated (or correlated) with Hu Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hu Lane Associate has no effect on the direction of Clevo i.e., Clevo and Hu Lane go up and down completely randomly.
Pair Corralation between Clevo and Hu Lane
Assuming the 90 days trading horizon Clevo is expected to generate 1.24 times less return on investment than Hu Lane. But when comparing it to its historical volatility, Clevo Co is 1.55 times less risky than Hu Lane. It trades about 0.04 of its potential returns per unit of risk. Hu Lane Associate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 14,928 in Hu Lane Associate on September 3, 2024 and sell it today you would earn a total of 1,622 from holding Hu Lane Associate or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Hu Lane Associate
Performance |
| Timeline |
| Clevo |
| Hu Lane Associate |
Clevo and Hu Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Hu Lane
The main advantage of trading using opposite Clevo and Hu Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Hu Lane 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 Hu Lane will offset losses from the drop in Hu Lane's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Hu Lane vs. Tainan Spinning Co | Hu Lane vs. Chia Her Industrial | Hu Lane vs. WiseChip Semiconductor | Hu Lane vs. Novatek Microelectronics Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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