Correlation Between Hannstar Display and Hsinjing Holding
Can any of the company-specific risk be diversified away by investing in both Hannstar Display and Hsinjing 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 Hannstar Display and Hsinjing Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannstar Display Corp and Hsinjing Holding Co, you can compare the effects of market volatilities on Hannstar Display and Hsinjing 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 Hannstar Display with a short position of Hsinjing Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannstar Display and Hsinjing Holding.
Diversification Opportunities for Hannstar Display and Hsinjing Holding
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hannstar and Hsinjing is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hannstar Display Corp and Hsinjing Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsinjing Holding and Hannstar Display 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 Hannstar Display Corp are associated (or correlated) with Hsinjing Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsinjing Holding has no effect on the direction of Hannstar Display i.e., Hannstar Display and Hsinjing Holding go up and down completely randomly.
Pair Corralation between Hannstar Display and Hsinjing Holding
Assuming the 90 days trading horizon Hannstar Display Corp is expected to under-perform the Hsinjing Holding. In addition to that, Hannstar Display is 1.01 times more volatile than Hsinjing Holding Co. It trades about -0.08 of its total potential returns per unit of risk. Hsinjing Holding Co is currently generating about -0.06 per unit of volatility. If you would invest 2,275 in Hsinjing Holding Co on September 14, 2024 and sell it today you would lose (35.00) from holding Hsinjing Holding Co or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannstar Display Corp vs. Hsinjing Holding Co
Performance |
| Timeline |
| Hannstar Display Corp |
| Hsinjing Holding |
Hannstar Display and Hsinjing Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannstar Display and Hsinjing Holding
The main advantage of trading using opposite Hannstar Display and Hsinjing Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannstar Display position performs unexpectedly, Hsinjing 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 Hsinjing Holding will offset losses from the drop in Hsinjing Holding's long position.| Hannstar Display vs. AU Optronics | Hannstar Display vs. Innolux Corp | Hannstar Display vs. Ruentex Development Co | Hannstar Display vs. WiseChip Semiconductor |
| Hsinjing Holding vs. Hannstar Display Corp | Hsinjing Holding vs. Chi Hua Fitness | Hsinjing Holding vs. Pacific Hospital Supply | Hsinjing Holding vs. CHC Healthcare Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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