Correlation Between P Duke and Hiwin Mikrosystem
Can any of the company-specific risk be diversified away by investing in both P Duke and Hiwin Mikrosystem 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 P Duke and Hiwin Mikrosystem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between P Duke Technology Co and Hiwin Mikrosystem Corp, you can compare the effects of market volatilities on P Duke and Hiwin Mikrosystem 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 P Duke with a short position of Hiwin Mikrosystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of P Duke and Hiwin Mikrosystem.
Diversification Opportunities for P Duke and Hiwin Mikrosystem
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 8109 and Hiwin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding P Duke Technology Co and Hiwin Mikrosystem Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiwin Mikrosystem Corp and P Duke 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 P Duke Technology Co are associated (or correlated) with Hiwin Mikrosystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiwin Mikrosystem Corp has no effect on the direction of P Duke i.e., P Duke and Hiwin Mikrosystem go up and down completely randomly.
Pair Corralation between P Duke and Hiwin Mikrosystem
Assuming the 90 days trading horizon P Duke Technology Co is expected to generate 0.1 times more return on investment than Hiwin Mikrosystem. However, P Duke Technology Co is 10.22 times less risky than Hiwin Mikrosystem. It trades about -0.06 of its potential returns per unit of risk. Hiwin Mikrosystem Corp is currently generating about -0.28 per unit of risk. If you would invest 8,750 in P Duke Technology Co on August 29, 2024 and sell it today you would lose (50.00) from holding P Duke Technology Co or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
P Duke Technology Co vs. Hiwin Mikrosystem Corp
Performance |
| Timeline |
| P Duke Technology |
| Hiwin Mikrosystem Corp |
P Duke and Hiwin Mikrosystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with P Duke and Hiwin Mikrosystem
The main advantage of trading using opposite P Duke and Hiwin Mikrosystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if P Duke position performs unexpectedly, Hiwin Mikrosystem 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 Hiwin Mikrosystem will offset losses from the drop in Hiwin Mikrosystem's long position.| P Duke vs. Sporton International | P Duke vs. Planet Technology | P Duke vs. Posiflex Technology | P Duke vs. ECOVE Environment Corp |
| Hiwin Mikrosystem vs. Simplo Technology Co | Hiwin Mikrosystem vs. Amtran Technology Co | Hiwin Mikrosystem vs. Allis Electric Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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