Correlation Between HiTi Digital and Jetway Information
Can any of the company-specific risk be diversified away by investing in both HiTi Digital and Jetway Information 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 Jetway Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HiTi Digital and Jetway Information Co, you can compare the effects of market volatilities on HiTi Digital and Jetway Information 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 Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of HiTi Digital and Jetway Information.
Diversification Opportunities for HiTi Digital and Jetway Information
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HiTi and Jetway is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding HiTi Digital and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information 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 Jetway Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetway Information has no effect on the direction of HiTi Digital i.e., HiTi Digital and Jetway Information go up and down completely randomly.
Pair Corralation between HiTi Digital and Jetway Information
Assuming the 90 days trading horizon HiTi Digital is expected to generate 0.88 times more return on investment than Jetway Information. However, HiTi Digital is 1.14 times less risky than Jetway Information. It trades about 0.44 of its potential returns per unit of risk. Jetway Information Co is currently generating about -0.27 per unit of risk. If you would invest 1,635 in HiTi Digital on October 20, 2024 and sell it today you would earn a total of 310.00 from holding HiTi Digital or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HiTi Digital vs. Jetway Information Co
Performance |
| Timeline |
| HiTi Digital |
| Jetway Information |
HiTi Digital and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HiTi Digital and Jetway Information
The main advantage of trading using opposite HiTi Digital and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HiTi Digital position performs unexpectedly, Jetway Information 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 Jetway Information will offset losses from the drop in Jetway Information's long position.| HiTi Digital vs. ASRock Inc | HiTi Digital vs. FIC Global | HiTi Digital vs. In Win Development | HiTi Digital vs. Getac Technology Corp |
| Jetway Information vs. United Radiant Technology | Jetway Information vs. STL Technology Co | Jetway Information vs. Tait Marketing Distribution | Jetway Information vs. Sun Max Tech |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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