Correlation Between Hu Lane and Amulaire Thermal
Can any of the company-specific risk be diversified away by investing in both Hu Lane and Amulaire Thermal 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 Hu Lane and Amulaire Thermal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hu Lane Associate and Amulaire Thermal Technology, you can compare the effects of market volatilities on Hu Lane and Amulaire Thermal 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 Hu Lane with a short position of Amulaire Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hu Lane and Amulaire Thermal.
Diversification Opportunities for Hu Lane and Amulaire Thermal
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 6279 and Amulaire is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hu Lane Associate and Amulaire Thermal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amulaire Thermal Tec and Hu Lane 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 Hu Lane Associate are associated (or correlated) with Amulaire Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amulaire Thermal Tec has no effect on the direction of Hu Lane i.e., Hu Lane and Amulaire Thermal go up and down completely randomly.
Pair Corralation between Hu Lane and Amulaire Thermal
Assuming the 90 days trading horizon Hu Lane Associate is expected to generate 1.15 times more return on investment than Amulaire Thermal. However, Hu Lane is 1.15 times more volatile than Amulaire Thermal Technology. It trades about 0.0 of its potential returns per unit of risk. Amulaire Thermal Technology is currently generating about -0.14 per unit of risk. If you would invest 16,650 in Hu Lane Associate on September 3, 2024 and sell it today you would lose (100.00) from holding Hu Lane Associate or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hu Lane Associate vs. Amulaire Thermal Technology
Performance |
| Timeline |
| Hu Lane Associate |
| Amulaire Thermal Tec |
Hu Lane and Amulaire Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hu Lane and Amulaire Thermal
The main advantage of trading using opposite Hu Lane and Amulaire Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hu Lane position performs unexpectedly, Amulaire Thermal 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 Amulaire Thermal will offset losses from the drop in Amulaire Thermal's long position.| Hu Lane vs. Tainan Spinning Co | Hu Lane vs. Chia Her Industrial | Hu Lane vs. WiseChip Semiconductor | Hu Lane vs. Novatek Microelectronics Corp |
| Amulaire Thermal vs. E Lead Electronic Co | Amulaire Thermal vs. Jentech Precision Industrial | Amulaire Thermal vs. Turvo International Co | Amulaire Thermal vs. Ruentex Development Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |