Correlation Between Sitronix Technology and HIM International
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology 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 Sitronix Technology and HIM International 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 HIM International Music, you can compare the effects of market volatilities on Sitronix Technology 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 Sitronix Technology with a short position of HIM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and HIM International.
Diversification Opportunities for Sitronix Technology and HIM International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sitronix and HIM is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp 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 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 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 Sitronix Technology i.e., Sitronix Technology and HIM International go up and down completely randomly.
Pair Corralation between Sitronix Technology and HIM International
Assuming the 90 days trading horizon Sitronix Technology Corp is expected to under-perform the HIM International. In addition to that, Sitronix Technology is 1.26 times more volatile than HIM International Music. It trades about -0.06 of its total potential returns per unit of risk. HIM International Music is currently generating about 0.07 per unit of volatility. If you would invest 9,728 in HIM International Music on September 15, 2024 and sell it today you would earn a total of 2,472 from holding HIM International Music or generate 25.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitronix Technology Corp vs. HIM International Music
Performance |
| Timeline |
| Sitronix Technology Corp |
| HIM International Music |
Sitronix Technology and HIM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and HIM International
The main advantage of trading using opposite Sitronix Technology and HIM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology 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.| Sitronix Technology vs. AU Optronics | Sitronix Technology vs. Innolux Corp | Sitronix Technology vs. Ruentex Development Co | Sitronix Technology vs. WiseChip Semiconductor |
| HIM International vs. Simplo Technology Co | HIM International vs. Sitronix Technology Corp | HIM International vs. Grand Ocean Retail | HIM International vs. Min Aik Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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