Correlation Between HannsTouch Solution and Holy Stone
Can any of the company-specific risk be diversified away by investing in both HannsTouch Solution and Holy Stone 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 HannsTouch Solution and Holy Stone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HannsTouch Solution and Holy Stone Enterprise, you can compare the effects of market volatilities on HannsTouch Solution and Holy Stone 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 HannsTouch Solution with a short position of Holy Stone. Check out your portfolio center. Please also check ongoing floating volatility patterns of HannsTouch Solution and Holy Stone.
Diversification Opportunities for HannsTouch Solution and Holy Stone
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HannsTouch and Holy is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HannsTouch Solution and Holy Stone Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holy Stone Enterprise and HannsTouch Solution 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 HannsTouch Solution are associated (or correlated) with Holy Stone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holy Stone Enterprise has no effect on the direction of HannsTouch Solution i.e., HannsTouch Solution and Holy Stone go up and down completely randomly.
Pair Corralation between HannsTouch Solution and Holy Stone
Assuming the 90 days trading horizon HannsTouch Solution is expected to under-perform the Holy Stone. In addition to that, HannsTouch Solution is 3.08 times more volatile than Holy Stone Enterprise. It trades about -0.34 of its total potential returns per unit of risk. Holy Stone Enterprise is currently generating about 0.05 per unit of volatility. If you would invest 8,610 in Holy Stone Enterprise on October 24, 2024 and sell it today you would earn a total of 40.00 from holding Holy Stone Enterprise or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
HannsTouch Solution vs. Holy Stone Enterprise
Performance |
| Timeline |
| HannsTouch Solution |
| Holy Stone Enterprise |
HannsTouch Solution and Holy Stone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HannsTouch Solution and Holy Stone
The main advantage of trading using opposite HannsTouch Solution and Holy Stone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HannsTouch Solution position performs unexpectedly, Holy Stone 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 Holy Stone will offset losses from the drop in Holy Stone's long position.| HannsTouch Solution vs. Hannstar Display Corp | HannsTouch Solution vs. Amtran Technology Co | HannsTouch Solution vs. AU Optronics | HannsTouch Solution vs. Optimax Technology Corp |
| Holy Stone vs. Walsin Technology Corp | Holy Stone vs. Yageo Corp | Holy Stone vs. Tripod Technology Corp | Holy Stone vs. Asia Optical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |