Correlation Between U Ming and Hi Clearance
Can any of the company-specific risk be diversified away by investing in both U Ming and Hi Clearance 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 U Ming and Hi Clearance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Ming Marine Transport and Hi Clearance, you can compare the effects of market volatilities on U Ming and Hi Clearance 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 U Ming with a short position of Hi Clearance. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Ming and Hi Clearance.
Diversification Opportunities for U Ming and Hi Clearance
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 2606 and 1788 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding U Ming Marine Transport and Hi Clearance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Clearance and U Ming 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 U Ming Marine Transport are associated (or correlated) with Hi Clearance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Clearance has no effect on the direction of U Ming i.e., U Ming and Hi Clearance go up and down completely randomly.
Pair Corralation between U Ming and Hi Clearance
Assuming the 90 days trading horizon U Ming Marine Transport is expected to generate 5.07 times more return on investment than Hi Clearance. However, U Ming is 5.07 times more volatile than Hi Clearance. It trades about 0.04 of its potential returns per unit of risk. Hi Clearance is currently generating about 0.02 per unit of risk. If you would invest 4,558 in U Ming Marine Transport on October 23, 2024 and sell it today you would earn a total of 1,232 from holding U Ming Marine Transport or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
U Ming Marine Transport vs. Hi Clearance
Performance |
| Timeline |
| U Ming Marine |
| Hi Clearance |
U Ming and Hi Clearance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Ming and Hi Clearance
The main advantage of trading using opposite U Ming and Hi Clearance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Ming position performs unexpectedly, Hi Clearance 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 Hi Clearance will offset losses from the drop in Hi Clearance's long position.| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
| Hi Clearance vs. Golden Biotechnology | Hi Clearance vs. Intai Technology | Hi Clearance vs. Asmedia Technology | Hi Clearance vs. United Radiant 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world |