Correlation Between Singatron Enterprise and Hi Sharp
Can any of the company-specific risk be diversified away by investing in both Singatron Enterprise and Hi Sharp 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 Singatron Enterprise and Hi Sharp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singatron Enterprise Co and Hi Sharp Electronics, you can compare the effects of market volatilities on Singatron Enterprise and Hi Sharp 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 Singatron Enterprise with a short position of Hi Sharp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singatron Enterprise and Hi Sharp.
Diversification Opportunities for Singatron Enterprise and Hi Sharp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singatron and 3128 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Singatron Enterprise Co and Hi Sharp Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Sharp Electronics and Singatron Enterprise 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 Singatron Enterprise Co are associated (or correlated) with Hi Sharp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Sharp Electronics has no effect on the direction of Singatron Enterprise i.e., Singatron Enterprise and Hi Sharp go up and down completely randomly.
Pair Corralation between Singatron Enterprise and Hi Sharp
Assuming the 90 days trading horizon Singatron Enterprise Co is expected to under-perform the Hi Sharp. In addition to that, Singatron Enterprise is 2.94 times more volatile than Hi Sharp Electronics. It trades about -0.05 of its total potential returns per unit of risk. Hi Sharp Electronics is currently generating about 0.12 per unit of volatility. If you would invest 2,770 in Hi Sharp Electronics on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Hi Sharp Electronics or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singatron Enterprise Co vs. Hi Sharp Electronics
Performance |
| Timeline |
| Singatron Enterprise |
| Hi Sharp Electronics |
Singatron Enterprise and Hi Sharp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singatron Enterprise and Hi Sharp
The main advantage of trading using opposite Singatron Enterprise and Hi Sharp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singatron Enterprise position performs unexpectedly, Hi Sharp 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 Sharp will offset losses from the drop in Hi Sharp's long position.| Singatron Enterprise vs. Advantech Co | Singatron Enterprise vs. IEI Integration Corp | Singatron Enterprise vs. Flytech Technology Co | Singatron Enterprise vs. ADLINK Technology |
| Hi Sharp vs. Taiwan Secom Co | Hi Sharp vs. Taiwan Shin Kong | Hi Sharp vs. AVer Information | Hi Sharp vs. GeoVision |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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