Correlation Between Haier Smart and Caseys General
Can any of the company-specific risk be diversified away by investing in both Haier Smart and Caseys General 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 Haier Smart and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and Caseys General Stores, you can compare the effects of market volatilities on Haier Smart and Caseys General 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 Haier Smart with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Caseys General.
Diversification Opportunities for Haier Smart and Caseys General
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haier and Caseys is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Haier Smart 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 Haier Smart Home are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Haier Smart i.e., Haier Smart and Caseys General go up and down completely randomly.
Pair Corralation between Haier Smart and Caseys General
Assuming the 90 days trading horizon Haier Smart is expected to generate 3.6 times less return on investment than Caseys General. In addition to that, Haier Smart is 1.2 times more volatile than Caseys General Stores. It trades about 0.04 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.18 per unit of volatility. If you would invest 38,600 in Caseys General Stores on November 4, 2024 and sell it today you would earn a total of 1,800 from holding Caseys General Stores or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. Caseys General Stores
Performance |
| Timeline |
| Haier Smart Home |
| Caseys General Stores |
Haier Smart and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Caseys General
The main advantage of trading using opposite Haier Smart and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Haier Smart vs. TT Electronics PLC | Haier Smart vs. JAPAN AIRLINES | Haier Smart vs. Arrow Electronics | Haier Smart vs. Richardson Electronics |
| Caseys General vs. PennantPark Investment | Caseys General vs. ANGANG STEEL H | Caseys General vs. Olympic Steel | Caseys General vs. CHRYSALIS INVESTMENTS LTD |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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