Correlation Between Chailease Holding and Hi Clearance
Can any of the company-specific risk be diversified away by investing in both Chailease Holding 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 Chailease Holding and Hi Clearance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chailease Holding Co and Hi Clearance, you can compare the effects of market volatilities on Chailease Holding 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 Chailease Holding with a short position of Hi Clearance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chailease Holding and Hi Clearance.
Diversification Opportunities for Chailease Holding and Hi Clearance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chailease and 1788 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chailease Holding Co and Hi Clearance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Clearance and Chailease Holding 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 Chailease Holding Co 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 Chailease Holding i.e., Chailease Holding and Hi Clearance go up and down completely randomly.
Pair Corralation between Chailease Holding and Hi Clearance
Assuming the 90 days trading horizon Chailease Holding Co is expected to under-perform the Hi Clearance. In addition to that, Chailease Holding is 3.71 times more volatile than Hi Clearance. It trades about -0.07 of its total potential returns per unit of risk. Hi Clearance is currently generating about 0.03 per unit of volatility. If you would invest 13,106 in Hi Clearance on September 1, 2024 and sell it today you would earn a total of 794.00 from holding Hi Clearance or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.55% |
| Values | Daily Returns |
Chailease Holding Co vs. Hi Clearance
Performance |
| Timeline |
| Chailease Holding |
| Hi Clearance |
Chailease Holding and Hi Clearance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chailease Holding and Hi Clearance
The main advantage of trading using opposite Chailease Holding and Hi Clearance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chailease Holding 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.| Chailease Holding vs. Fubon Financial Holding | Chailease Holding vs. CTBC Financial Holding | Chailease Holding vs. Mega Financial Holding | Chailease Holding vs. Cathay Financial Holding |
| Hi Clearance vs. ECOVE Environment Corp | Hi Clearance vs. Onyx Healthcare | Hi Clearance vs. Healthconn Corp | Hi Clearance vs. Wei Chih Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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