Correlation Between Hsin Ba and Aero Win
Can any of the company-specific risk be diversified away by investing in both Hsin Ba and Aero Win 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 Hsin Ba and Aero Win into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsin Ba Ba and Aero Win Technology, you can compare the effects of market volatilities on Hsin Ba and Aero Win 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 Hsin Ba with a short position of Aero Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsin Ba and Aero Win.
Diversification Opportunities for Hsin Ba and Aero Win
Pay attention - limited upside
The 3 months correlation between Hsin and Aero is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hsin Ba Ba and Aero Win Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aero Win Technology and Hsin Ba 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 Hsin Ba Ba are associated (or correlated) with Aero Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aero Win Technology has no effect on the direction of Hsin Ba i.e., Hsin Ba and Aero Win go up and down completely randomly.
Pair Corralation between Hsin Ba and Aero Win
Assuming the 90 days trading horizon Hsin Ba Ba is expected to generate 1.38 times more return on investment than Aero Win. However, Hsin Ba is 1.38 times more volatile than Aero Win Technology. It trades about 0.01 of its potential returns per unit of risk. Aero Win Technology is currently generating about 0.01 per unit of risk. If you would invest 12,650 in Hsin Ba Ba on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Hsin Ba Ba or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hsin Ba Ba vs. Aero Win Technology
Performance |
| Timeline |
| Hsin Ba Ba |
| Aero Win Technology |
Hsin Ba and Aero Win Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hsin Ba and Aero Win
The main advantage of trading using opposite Hsin Ba and Aero Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsin Ba position performs unexpectedly, Aero Win 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 Aero Win will offset losses from the drop in Aero Win's long position.| Hsin Ba vs. Great China Metal | Hsin Ba vs. Ton Yi Industrial | Hsin Ba vs. Ching Feng Home | Hsin Ba vs. Choice Development |
| Aero Win vs. CSBC Corp Taiwan | Aero Win vs. Tong Tai Machine Tool | Aero Win vs. Super Dragon Technology | Aero Win vs. Victory New Materials |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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