Correlation Between HIM International and Asia Metal
Can any of the company-specific risk be diversified away by investing in both HIM International and Asia Metal 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 Asia Metal 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 Asia Metal Industries, you can compare the effects of market volatilities on HIM International and Asia Metal 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 Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIM International and Asia Metal.
Diversification Opportunities for HIM International and Asia Metal
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HIM and Asia is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding HIM International Music and Asia Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal Industries 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 Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Industries has no effect on the direction of HIM International i.e., HIM International and Asia Metal go up and down completely randomly.
Pair Corralation between HIM International and Asia Metal
Assuming the 90 days trading horizon HIM International Music is expected to generate 0.44 times more return on investment than Asia Metal. However, HIM International Music is 2.3 times less risky than Asia Metal. It trades about 0.04 of its potential returns per unit of risk. Asia Metal Industries is currently generating about -0.01 per unit of risk. If you would invest 12,100 in HIM International Music on September 4, 2024 and sell it today you would earn a total of 150.00 from holding HIM International Music or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIM International Music vs. Asia Metal Industries
Performance |
| Timeline |
| HIM International Music |
| Asia Metal Industries |
HIM International and Asia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIM International and Asia Metal
The main advantage of trading using opposite HIM International and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIM International position performs unexpectedly, Asia Metal 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 Asia Metal will offset losses from the drop in Asia Metal's long position.| HIM International vs. Symtek Automation Asia | HIM International vs. WiseChip Semiconductor | HIM International vs. Novatek Microelectronics Corp | HIM International vs. Tanvex BioPharma |
| Asia Metal vs. Sinopower Semiconductor | Asia Metal vs. Winstek Semiconductor Co | Asia Metal vs. Davicom Semiconductor | Asia Metal vs. HIM International Music |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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