Correlation Between HIM International and Feng Ching
Can any of the company-specific risk be diversified away by investing in both HIM International and Feng Ching 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 HIM International and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIM International Music and Feng Ching Metal, you can compare the effects of market volatilities on HIM International and Feng Ching 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 HIM International with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIM International and Feng Ching.
Diversification Opportunities for HIM International and Feng Ching
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HIM and Feng is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HIM International Music and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and HIM International 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 HIM International Music are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of HIM International i.e., HIM International and Feng Ching go up and down completely randomly.
Pair Corralation between HIM International and Feng Ching
Assuming the 90 days trading horizon HIM International Music is expected to generate 0.94 times more return on investment than Feng Ching. However, HIM International Music is 1.06 times less risky than Feng Ching. It trades about 0.13 of its potential returns per unit of risk. Feng Ching Metal is currently generating about -0.01 per unit of risk. If you would invest 11,700 in HIM International Music on September 1, 2024 and sell it today you would earn a total of 550.00 from holding HIM International Music or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIM International Music vs. Feng Ching Metal
Performance |
| Timeline |
| HIM International Music |
| Feng Ching Metal |
HIM International and Feng Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIM International and Feng Ching
The main advantage of trading using opposite HIM International and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIM International position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.| HIM International vs. Sports Gear Co | HIM International vs. PlayNitride | HIM International vs. Kindom Construction Corp | HIM International vs. ReaLy Development Construction |
| Feng Ching vs. Intai Technology | Feng Ching vs. Microtips Technology | Feng Ching vs. Maxigen Biotech | Feng Ching vs. V Tac Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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