Correlation Between HIM International and Dimerco Data
Can any of the company-specific risk be diversified away by investing in both HIM International and Dimerco Data 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 Dimerco Data 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 Dimerco Data System, you can compare the effects of market volatilities on HIM International and Dimerco Data 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 Dimerco Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIM International and Dimerco Data.
Diversification Opportunities for HIM International and Dimerco Data
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HIM and Dimerco is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding HIM International Music and Dimerco Data System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimerco Data System 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 Dimerco Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimerco Data System has no effect on the direction of HIM International i.e., HIM International and Dimerco Data go up and down completely randomly.
Pair Corralation between HIM International and Dimerco Data
Assuming the 90 days trading horizon HIM International Music is expected to generate 1.37 times more return on investment than Dimerco Data. However, HIM International is 1.37 times more volatile than Dimerco Data System. It trades about 0.07 of its potential returns per unit of risk. Dimerco Data System is currently generating about -0.22 per unit of risk. If you would invest 12,000 in HIM International Music on September 2, 2024 and sell it today you would earn a total of 250.00 from holding HIM International Music or generate 2.08% 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. Dimerco Data System
Performance |
| Timeline |
| HIM International Music |
| Dimerco Data System |
HIM International and Dimerco Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIM International and Dimerco Data
The main advantage of trading using opposite HIM International and Dimerco Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIM International position performs unexpectedly, Dimerco Data 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 Dimerco Data will offset losses from the drop in Dimerco Data's long position.| HIM International vs. Cameo Communications | HIM International vs. Nova Technology | HIM International vs. TWOWAY Communications | HIM International vs. Asmedia Technology |
| Dimerco Data vs. Cyberlink Co | Dimerco Data vs. Sesoda Corp | Dimerco Data vs. FocalTech Systems Co | Dimerco Data vs. Wah Hong Industrial |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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