Correlation Between Commercial Vehicle and HANISON STR
Can any of the company-specific risk be diversified away by investing in both Commercial Vehicle and HANISON STR 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 Commercial Vehicle and HANISON STR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial Vehicle Group and HANISON STR HLDG, you can compare the effects of market volatilities on Commercial Vehicle and HANISON STR 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 Commercial Vehicle with a short position of HANISON STR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Vehicle and HANISON STR.
Diversification Opportunities for Commercial Vehicle and HANISON STR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Commercial and HANISON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Vehicle Group and HANISON STR HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANISON STR HLDG and Commercial Vehicle 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 Commercial Vehicle Group are associated (or correlated) with HANISON STR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANISON STR HLDG has no effect on the direction of Commercial Vehicle i.e., Commercial Vehicle and HANISON STR go up and down completely randomly.
Pair Corralation between Commercial Vehicle and HANISON STR
If you would invest (100.00) in HANISON STR HLDG on September 3, 2024 and sell it today you would earn a total of 100.00 from holding HANISON STR HLDG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Commercial Vehicle Group vs. HANISON STR HLDG
Performance |
| Timeline |
| Commercial Vehicle |
| HANISON STR HLDG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Commercial Vehicle and HANISON STR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Vehicle and HANISON STR
The main advantage of trading using opposite Commercial Vehicle and HANISON STR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Vehicle position performs unexpectedly, HANISON STR 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 HANISON STR will offset losses from the drop in HANISON STR's long position.| Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc | Commercial Vehicle vs. Apple Inc |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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