Correlation Between Tidehold Development and Hi Lai
Can any of the company-specific risk be diversified away by investing in both Tidehold Development and Hi Lai 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 Tidehold Development and Hi Lai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidehold Development Co and Hi Lai Foods Co, you can compare the effects of market volatilities on Tidehold Development and Hi Lai 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 Tidehold Development with a short position of Hi Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidehold Development and Hi Lai.
Diversification Opportunities for Tidehold Development and Hi Lai
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tidehold and 1268 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tidehold Development Co and Hi Lai Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Lai Foods and Tidehold Development 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 Tidehold Development Co are associated (or correlated) with Hi Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Lai Foods has no effect on the direction of Tidehold Development i.e., Tidehold Development and Hi Lai go up and down completely randomly.
Pair Corralation between Tidehold Development and Hi Lai
Assuming the 90 days trading horizon Tidehold Development Co is expected to generate 2.94 times more return on investment than Hi Lai. However, Tidehold Development is 2.94 times more volatile than Hi Lai Foods Co. It trades about 0.1 of its potential returns per unit of risk. Hi Lai Foods Co is currently generating about -0.26 per unit of risk. If you would invest 1,730 in Tidehold Development Co on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Tidehold Development Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidehold Development Co vs. Hi Lai Foods Co
Performance |
| Timeline |
| Tidehold Development |
| Hi Lai Foods |
Tidehold Development and Hi Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidehold Development and Hi Lai
The main advantage of trading using opposite Tidehold Development and Hi Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidehold Development position performs unexpectedly, Hi Lai 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 Hi Lai will offset losses from the drop in Hi Lai's long position.| Tidehold Development vs. Ton Yi Industrial | Tidehold Development vs. Shinih Enterprise Co | Tidehold Development vs. Associated Industries China | Tidehold Development vs. Taiwan Tea Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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