Correlation Between Haoxi Health and Sea
Can any of the company-specific risk be diversified away by investing in both Haoxi Health and Sea 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 Haoxi Health and Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haoxi Health Technology and Sea, you can compare the effects of market volatilities on Haoxi Health and Sea 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 Haoxi Health with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haoxi Health and Sea.
Diversification Opportunities for Haoxi Health and Sea
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haoxi and Sea is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Haoxi Health Technology and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea and Haoxi Health 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 Haoxi Health Technology are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Haoxi Health i.e., Haoxi Health and Sea go up and down completely randomly.
Pair Corralation between Haoxi Health and Sea
Considering the 90-day investment horizon Haoxi Health Technology is expected to under-perform the Sea. In addition to that, Haoxi Health is 3.44 times more volatile than Sea. It trades about -0.08 of its total potential returns per unit of risk. Sea is currently generating about 0.29 per unit of volatility. If you would invest 9,599 in Sea on August 30, 2024 and sell it today you would earn a total of 1,972 from holding Sea or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haoxi Health Technology vs. Sea
Performance |
| Timeline |
| Haoxi Health Technology |
| Sea |
Haoxi Health and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haoxi Health and Sea
The main advantage of trading using opposite Haoxi Health and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haoxi Health position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Haoxi Health vs. CuriosityStream | Haoxi Health vs. iQIYI Inc | Haoxi Health vs. Sea | Haoxi Health vs. Scienjoy Holding Corp |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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