Correlation Between Grand Ocean and HIM International
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and HIM International 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 Grand Ocean and HIM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and HIM International Music, you can compare the effects of market volatilities on Grand Ocean and HIM International 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 Grand Ocean with a short position of HIM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and HIM International.
Diversification Opportunities for Grand Ocean and HIM International
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grand and HIM is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and HIM International Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIM International Music and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with HIM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIM International Music has no effect on the direction of Grand Ocean i.e., Grand Ocean and HIM International go up and down completely randomly.
Pair Corralation between Grand Ocean and HIM International
Assuming the 90 days trading horizon Grand Ocean Retail is expected to generate 2.71 times more return on investment than HIM International. However, Grand Ocean is 2.71 times more volatile than HIM International Music. It trades about 0.1 of its potential returns per unit of risk. HIM International Music is currently generating about -0.15 per unit of risk. If you would invest 1,160 in Grand Ocean Retail on September 15, 2024 and sell it today you would earn a total of 80.00 from holding Grand Ocean Retail or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. HIM International Music
Performance |
| Timeline |
| Grand Ocean Retail |
| HIM International Music |
Grand Ocean and HIM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and HIM International
The main advantage of trading using opposite Grand Ocean and HIM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, HIM International 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 HIM International will offset losses from the drop in HIM International's long position.| Grand Ocean vs. Feng Tay Enterprises | Grand Ocean vs. Ruentex Development Co | Grand Ocean vs. WiseChip Semiconductor | Grand Ocean vs. Novatek Microelectronics Corp |
| HIM International vs. Simplo Technology Co | HIM International vs. Sitronix Technology Corp | HIM International vs. Grand Ocean Retail | HIM International vs. Min Aik Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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