Correlation Between Hiwin Mikrosystem and Inmax Holding
Can any of the company-specific risk be diversified away by investing in both Hiwin Mikrosystem and Inmax Holding 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 Hiwin Mikrosystem and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiwin Mikrosystem Corp and Inmax Holding Co, you can compare the effects of market volatilities on Hiwin Mikrosystem and Inmax Holding 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 Hiwin Mikrosystem with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiwin Mikrosystem and Inmax Holding.
Diversification Opportunities for Hiwin Mikrosystem and Inmax Holding
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hiwin and Inmax is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hiwin Mikrosystem Corp and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and Hiwin Mikrosystem 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 Hiwin Mikrosystem Corp are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of Hiwin Mikrosystem i.e., Hiwin Mikrosystem and Inmax Holding go up and down completely randomly.
Pair Corralation between Hiwin Mikrosystem and Inmax Holding
Assuming the 90 days trading horizon Hiwin Mikrosystem Corp is expected to generate 0.88 times more return on investment than Inmax Holding. However, Hiwin Mikrosystem Corp is 1.14 times less risky than Inmax Holding. It trades about 0.05 of its potential returns per unit of risk. Inmax Holding Co is currently generating about 0.0 per unit of risk. If you would invest 12,700 in Hiwin Mikrosystem Corp on September 13, 2024 and sell it today you would earn a total of 400.00 from holding Hiwin Mikrosystem Corp or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hiwin Mikrosystem Corp vs. Inmax Holding Co
Performance |
| Timeline |
| Hiwin Mikrosystem Corp |
| Inmax Holding |
Hiwin Mikrosystem and Inmax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hiwin Mikrosystem and Inmax Holding
The main advantage of trading using opposite Hiwin Mikrosystem and Inmax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiwin Mikrosystem position performs unexpectedly, Inmax Holding 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 Inmax Holding will offset losses from the drop in Inmax Holding's long position.| Hiwin Mikrosystem vs. Hiwin Technologies Corp | Hiwin Mikrosystem vs. Kung Long Batteries | Hiwin Mikrosystem vs. Airtac International Group | Hiwin Mikrosystem vs. Fortune Electric Co |
| Inmax Holding vs. Hiwin Mikrosystem Corp | Inmax Holding vs. Ruentex Development Co | Inmax Holding vs. Symtek Automation Asia | Inmax Holding vs. WiseChip Semiconductor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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