Correlation Between Chi Sheng and Hi Clearance
Can any of the company-specific risk be diversified away by investing in both Chi Sheng 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 Chi Sheng and Hi Clearance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chi Sheng Chemical and Hi Clearance, you can compare the effects of market volatilities on Chi Sheng 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 Chi Sheng with a short position of Hi Clearance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chi Sheng and Hi Clearance.
Diversification Opportunities for Chi Sheng and Hi Clearance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chi and 1788 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chi Sheng Chemical and Hi Clearance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Clearance and Chi Sheng 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 Chi Sheng Chemical 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 Chi Sheng i.e., Chi Sheng and Hi Clearance go up and down completely randomly.
Pair Corralation between Chi Sheng and Hi Clearance
Assuming the 90 days trading horizon Chi Sheng Chemical is expected to under-perform the Hi Clearance. In addition to that, Chi Sheng is 2.95 times more volatile than Hi Clearance. It trades about -0.05 of its total potential returns per unit of risk. Hi Clearance is currently generating about 0.31 per unit of volatility. If you would invest 14,200 in Hi Clearance on November 27, 2024 and sell it today you would earn a total of 300.00 from holding Hi Clearance or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chi Sheng Chemical vs. Hi Clearance
Performance |
| Timeline |
| Chi Sheng Chemical |
| Hi Clearance |
Chi Sheng and Hi Clearance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chi Sheng and Hi Clearance
The main advantage of trading using opposite Chi Sheng and Hi Clearance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chi Sheng 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.| Chi Sheng vs. Asmedia Technology | Chi Sheng vs. Power Wind Health | Chi Sheng vs. Arbor Technology | Chi Sheng vs. Posiflex Technology |
| Hi Clearance vs. GeneFerm Biotechnology Co | Hi Clearance vs. Chinese Maritime Transport | Hi Clearance vs. Chi Hua Fitness | Hi Clearance vs. WinMate Communication INC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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