Correlation Between HiTi Digital and Getac Technology
Can any of the company-specific risk be diversified away by investing in both HiTi Digital and Getac Technology 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 HiTi Digital and Getac Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HiTi Digital and Getac Technology Corp, you can compare the effects of market volatilities on HiTi Digital and Getac Technology 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 HiTi Digital with a short position of Getac Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HiTi Digital and Getac Technology.
Diversification Opportunities for HiTi Digital and Getac Technology
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HiTi and Getac is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HiTi Digital and Getac Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getac Technology Corp and HiTi Digital 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 HiTi Digital are associated (or correlated) with Getac Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getac Technology Corp has no effect on the direction of HiTi Digital i.e., HiTi Digital and Getac Technology go up and down completely randomly.
Pair Corralation between HiTi Digital and Getac Technology
Assuming the 90 days trading horizon HiTi Digital is expected to generate 12.47 times more return on investment than Getac Technology. However, HiTi Digital is 12.47 times more volatile than Getac Technology Corp. It trades about 0.2 of its potential returns per unit of risk. Getac Technology Corp is currently generating about -0.13 per unit of risk. If you would invest 798.00 in HiTi Digital on September 1, 2024 and sell it today you would earn a total of 812.00 from holding HiTi Digital or generate 101.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HiTi Digital vs. Getac Technology Corp
Performance |
| Timeline |
| HiTi Digital |
| Getac Technology Corp |
HiTi Digital and Getac Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HiTi Digital and Getac Technology
The main advantage of trading using opposite HiTi Digital and Getac Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HiTi Digital position performs unexpectedly, Getac Technology 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 Getac Technology will offset losses from the drop in Getac Technology's long position.The idea behind HiTi Digital and Getac Technology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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