Correlation Between Applied Blockchain and Haitong Securities
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain and Haitong Securities 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 Applied Blockchain and Haitong Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Haitong Securities Co, you can compare the effects of market volatilities on Applied Blockchain and Haitong Securities 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 Applied Blockchain with a short position of Haitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Haitong Securities.
Diversification Opportunities for Applied Blockchain and Haitong Securities
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and Haitong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Haitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitong Securities and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with Haitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitong Securities has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and Haitong Securities go up and down completely randomly.
Pair Corralation between Applied Blockchain and Haitong Securities
Given the investment horizon of 90 days Applied Blockchain is expected to generate 1.4 times less return on investment than Haitong Securities. But when comparing it to its historical volatility, Applied Blockchain is 1.4 times less risky than Haitong Securities. It trades about 0.06 of its potential returns per unit of risk. Haitong Securities Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Haitong Securities Co on September 4, 2024 and sell it today you would earn a total of 426.00 from holding Haitong Securities Co or generate 83.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.4% |
| Values | Daily Returns |
Applied Blockchain vs. Haitong Securities Co
Performance |
| Timeline |
| Applied Blockchain |
| Haitong Securities |
Applied Blockchain and Haitong Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Haitong Securities
The main advantage of trading using opposite Applied Blockchain and Haitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, Haitong Securities 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 Haitong Securities will offset losses from the drop in Haitong Securities' long position.| Applied Blockchain vs. Innodata | Applied Blockchain vs. International Business Machines | Applied Blockchain vs. Aurora Innovation | Applied Blockchain vs. BigBearai Holdings |
| Haitong Securities vs. First Tractor | Haitong Securities vs. Ag Growth International | Haitong Securities vs. AmeraMex International | Haitong Securities vs. Arts Way Manufacturing Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |