Correlation Between Brainsway and Highcon Systems
Can any of the company-specific risk be diversified away by investing in both Brainsway and Highcon Systems 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 Brainsway and Highcon Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainsway and Highcon Systems, you can compare the effects of market volatilities on Brainsway and Highcon Systems 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 Brainsway with a short position of Highcon Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainsway and Highcon Systems.
Diversification Opportunities for Brainsway and Highcon Systems
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brainsway and Highcon is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Brainsway and Highcon Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highcon Systems and Brainsway 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 Brainsway are associated (or correlated) with Highcon Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highcon Systems has no effect on the direction of Brainsway i.e., Brainsway and Highcon Systems go up and down completely randomly.
Pair Corralation between Brainsway and Highcon Systems
Assuming the 90 days trading horizon Brainsway is expected to under-perform the Highcon Systems. But the stock apears to be less risky and, when comparing its historical volatility, Brainsway is 1.47 times less risky than Highcon Systems. The stock trades about -0.22 of its potential returns per unit of risk. The Highcon Systems is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,350 in Highcon Systems on September 12, 2024 and sell it today you would earn a total of 1,040 from holding Highcon Systems or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brainsway vs. Highcon Systems
Performance |
| Timeline |
| Brainsway |
| Highcon Systems |
Brainsway and Highcon Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brainsway and Highcon Systems
The main advantage of trading using opposite Brainsway and Highcon Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainsway position performs unexpectedly, Highcon Systems 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 Highcon Systems will offset losses from the drop in Highcon Systems' long position.| Brainsway vs. Sure Tech Investments LP | Brainsway vs. Technoplus Ventures | Brainsway vs. Rapac Communication Infrastructure | Brainsway vs. Batm Advanced Communications |
| Highcon Systems vs. Augwind Energy Tech | Highcon Systems vs. Opal Balance | Highcon Systems vs. B Communications | Highcon Systems vs. Mivne Real Estate |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |