Correlation Between Sitronix Technology and Hitron Technologies
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology and Hitron Technologies 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 Sitronix Technology and Hitron Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitronix Technology Corp and Hitron Technologies, you can compare the effects of market volatilities on Sitronix Technology and Hitron Technologies 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 Sitronix Technology with a short position of Hitron Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and Hitron Technologies.
Diversification Opportunities for Sitronix Technology and Hitron Technologies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sitronix and Hitron is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp and Hitron Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitron Technologies and Sitronix Technology 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 Sitronix Technology Corp are associated (or correlated) with Hitron Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitron Technologies has no effect on the direction of Sitronix Technology i.e., Sitronix Technology and Hitron Technologies go up and down completely randomly.
Pair Corralation between Sitronix Technology and Hitron Technologies
Assuming the 90 days trading horizon Sitronix Technology is expected to generate 2.14 times less return on investment than Hitron Technologies. But when comparing it to its historical volatility, Sitronix Technology Corp is 1.36 times less risky than Hitron Technologies. It trades about 0.02 of its potential returns per unit of risk. Hitron Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,625 in Hitron Technologies on August 30, 2024 and sell it today you would earn a total of 980.00 from holding Hitron Technologies or generate 37.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitronix Technology Corp vs. Hitron Technologies
Performance |
| Timeline |
| Sitronix Technology Corp |
| Hitron Technologies |
Sitronix Technology and Hitron Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and Hitron Technologies
The main advantage of trading using opposite Sitronix Technology and Hitron Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology position performs unexpectedly, Hitron Technologies 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 Hitron Technologies will offset losses from the drop in Hitron Technologies' long position.| Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology vs. FocalTech Systems Co | Sitronix Technology vs. Elan Microelectronics Corp | Sitronix Technology vs. Realtek Semiconductor Corp |
| Hitron Technologies vs. Accton Technology Corp | Hitron Technologies vs. D Link Corp | Hitron Technologies vs. Microelectronics Technology | Hitron Technologies vs. Gigastorage 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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