Correlation Between Haier Smart and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both Haier Smart and Treasury Wine 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 Treasury Wine 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 Treasury Wine Estates, you can compare the effects of market volatilities on Haier Smart and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Treasury Wine.
Diversification Opportunities for Haier Smart and Treasury Wine
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haier and Treasury is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of Haier Smart i.e., Haier Smart and Treasury Wine go up and down completely randomly.
Pair Corralation between Haier Smart and Treasury Wine
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 0.95 times more return on investment than Treasury Wine. However, Haier Smart Home is 1.05 times less risky than Treasury Wine. It trades about -0.01 of its potential returns per unit of risk. Treasury Wine Estates is currently generating about -0.14 per unit of risk. If you would invest 183.00 in Haier Smart Home on November 3, 2024 and sell it today you would lose (1.00) from holding Haier Smart Home or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haier Smart Home vs. Treasury Wine Estates
Performance |
| Timeline |
| Haier Smart Home |
| Treasury Wine Estates |
Haier Smart and Treasury Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Treasury Wine
The main advantage of trading using opposite Haier Smart and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.| Haier Smart vs. BJs Wholesale Club | Haier Smart vs. PICKN PAY STORES | Haier Smart vs. Ringmetall SE | Haier Smart vs. SPARTAN STORES |
| Treasury Wine vs. Daido Steel Co | Treasury Wine vs. Mount Gibson Iron | Treasury Wine vs. Khiron Life Sciences | Treasury Wine vs. DENTSPLY SIRONA |
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
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| 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 | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |