Correlation Between In Win and HiTi Digital
Can any of the company-specific risk be diversified away by investing in both In Win and HiTi Digital 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 In Win and HiTi Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In Win Development and HiTi Digital, you can compare the effects of market volatilities on In Win and HiTi Digital 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 In Win with a short position of HiTi Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of In Win and HiTi Digital.
Diversification Opportunities for In Win and HiTi Digital
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 6117 and HiTi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding In Win Development and HiTi Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HiTi Digital and In Win 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 In Win Development are associated (or correlated) with HiTi Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HiTi Digital has no effect on the direction of In Win i.e., In Win and HiTi Digital go up and down completely randomly.
Pair Corralation between In Win and HiTi Digital
Assuming the 90 days trading horizon In Win Development is expected to generate 0.66 times more return on investment than HiTi Digital. However, In Win Development is 1.51 times less risky than HiTi Digital. It trades about 0.12 of its potential returns per unit of risk. HiTi Digital is currently generating about 0.03 per unit of risk. If you would invest 1,495 in In Win Development on August 29, 2024 and sell it today you would earn a total of 9,005 from holding In Win Development or generate 602.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
In Win Development vs. HiTi Digital
Performance |
| Timeline |
| In Win Development |
| HiTi Digital |
In Win and HiTi Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In Win and HiTi Digital
The main advantage of trading using opposite In Win and HiTi Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In Win position performs unexpectedly, HiTi Digital 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 HiTi Digital will offset losses from the drop in HiTi Digital's long position.| In Win vs. Sitronix Technology Corp | In Win vs. Elan Microelectronics Corp | In Win vs. Global Unichip Corp | In Win vs. Holtek Semiconductor |
| HiTi Digital vs. ASRock Inc | HiTi Digital vs. FIC Global | HiTi Digital vs. In Win Development | HiTi Digital vs. Getac Technology Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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