Correlation Between Onyx Healthcare and HIM International
Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare 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 Onyx Healthcare and HIM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onyx Healthcare and HIM International Music, you can compare the effects of market volatilities on Onyx Healthcare 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 Onyx Healthcare with a short position of HIM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and HIM International.
Diversification Opportunities for Onyx Healthcare and HIM International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onyx and HIM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare 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 Onyx Healthcare 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 Onyx Healthcare 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 Onyx Healthcare i.e., Onyx Healthcare and HIM International go up and down completely randomly.
Pair Corralation between Onyx Healthcare and HIM International
Assuming the 90 days trading horizon Onyx Healthcare is expected to generate 1.14 times less return on investment than HIM International. In addition to that, Onyx Healthcare is 1.79 times more volatile than HIM International Music. It trades about 0.03 of its total potential returns per unit of risk. HIM International Music is currently generating about 0.06 per unit of volatility. If you would invest 10,058 in HIM International Music on October 12, 2024 and sell it today you would earn a total of 1,692 from holding HIM International Music or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onyx Healthcare vs. HIM International Music
Performance |
| Timeline |
| Onyx Healthcare |
| HIM International Music |
Onyx Healthcare and HIM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onyx Healthcare and HIM International
The main advantage of trading using opposite Onyx Healthcare and HIM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx Healthcare 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.| Onyx Healthcare vs. Chung Lien Transportation | Onyx Healthcare vs. Shin Kong Financial | Onyx Healthcare vs. Sinopac Financial Holdings | Onyx Healthcare vs. IBF Financial Holdings |
| HIM International vs. Great Computer | HIM International vs. Kworld Computer Co | HIM International vs. Onyx Healthcare | HIM International vs. Healthconn 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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