Correlation Between HIM International and Song Ho
Can any of the company-specific risk be diversified away by investing in both HIM International and Song Ho 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 Song Ho 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 Song Ho Industrial, you can compare the effects of market volatilities on HIM International and Song Ho 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 Song Ho. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIM International and Song Ho.
Diversification Opportunities for HIM International and Song Ho
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HIM and Song is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HIM International Music and Song Ho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Ho Industrial 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 Song Ho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Ho Industrial has no effect on the direction of HIM International i.e., HIM International and Song Ho go up and down completely randomly.
Pair Corralation between HIM International and Song Ho
Assuming the 90 days trading horizon HIM International Music is expected to generate 2.88 times more return on investment than Song Ho. However, HIM International is 2.88 times more volatile than Song Ho Industrial. It trades about 0.05 of its potential returns per unit of risk. Song Ho Industrial is currently generating about 0.0 per unit of risk. If you would invest 11,700 in HIM International Music on August 30, 2024 and sell it today you would earn a total of 450.00 from holding HIM International Music or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIM International Music vs. Song Ho Industrial
Performance |
| Timeline |
| HIM International Music |
| Song Ho Industrial |
HIM International and Song Ho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIM International and Song Ho
The main advantage of trading using opposite HIM International and Song Ho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIM International position performs unexpectedly, Song Ho 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 Song Ho will offset losses from the drop in Song Ho's long position.| HIM International vs. Leatec Fine Ceramics | HIM International vs. Information Technology Total | HIM International vs. Kinko Optical Co | HIM International vs. E Lead Electronic Co |
| Song Ho vs. China Steel Corp | Song Ho vs. Chung Hung Steel | Song Ho vs. Tung Ho Steel | Song Ho vs. Feng Hsin Steel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |