Correlation Between Hiwin Mikrosystem and P Duke
Can any of the company-specific risk be diversified away by investing in both Hiwin Mikrosystem and P Duke 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 P Duke 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 P Duke Technology Co, you can compare the effects of market volatilities on Hiwin Mikrosystem and P Duke 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 P Duke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiwin Mikrosystem and P Duke.
Diversification Opportunities for Hiwin Mikrosystem and P Duke
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hiwin and 8109 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hiwin Mikrosystem Corp and P Duke Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P Duke Technology 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 P Duke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P Duke Technology has no effect on the direction of Hiwin Mikrosystem i.e., Hiwin Mikrosystem and P Duke go up and down completely randomly.
Pair Corralation between Hiwin Mikrosystem and P Duke
Assuming the 90 days trading horizon Hiwin Mikrosystem Corp is expected to generate 2.67 times more return on investment than P Duke. However, Hiwin Mikrosystem is 2.67 times more volatile than P Duke Technology Co. It trades about 0.08 of its potential returns per unit of risk. P Duke Technology Co is currently generating about -0.04 per unit of risk. If you would invest 6,941 in Hiwin Mikrosystem Corp on August 26, 2024 and sell it today you would earn a total of 5,959 from holding Hiwin Mikrosystem Corp or generate 85.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hiwin Mikrosystem Corp vs. P Duke Technology Co
Performance |
| Timeline |
| Hiwin Mikrosystem Corp |
| P Duke Technology |
Hiwin Mikrosystem and P Duke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hiwin Mikrosystem and P Duke
The main advantage of trading using opposite Hiwin Mikrosystem and P Duke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiwin Mikrosystem position performs unexpectedly, P Duke 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 P Duke will offset losses from the drop in P Duke'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 |
| P Duke vs. Walsin Lihwa Corp | P Duke vs. Ta Ya Electric | P Duke vs. Hiwin Mikrosystem Corp | P Duke vs. Amtran Technology 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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