Correlation Between Hitachi Construction and CSX
Can any of the company-specific risk be diversified away by investing in both Hitachi Construction and CSX 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 Hitachi Construction and CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Construction Machinery and CSX Corporation, you can compare the effects of market volatilities on Hitachi Construction and CSX 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 Hitachi Construction with a short position of CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Construction and CSX.
Diversification Opportunities for Hitachi Construction and CSX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hitachi and CSX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Construction Machinery and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and Hitachi Construction 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 Hitachi Construction Machinery are associated (or correlated) with CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Hitachi Construction i.e., Hitachi Construction and CSX go up and down completely randomly.
Pair Corralation between Hitachi Construction and CSX
If you would invest 2,020 in Hitachi Construction Machinery on October 20, 2024 and sell it today you would earn a total of 100.00 from holding Hitachi Construction Machinery or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hitachi Construction Machinery vs. CSX Corp.
Performance |
| Timeline |
| Hitachi Construction |
| CSX Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitachi Construction and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Construction and CSX
The main advantage of trading using opposite Hitachi Construction and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Construction position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| Hitachi Construction vs. FIREWEED METALS P | Hitachi Construction vs. ARDAGH METAL PACDL 0001 | Hitachi Construction vs. Fortescue Metals Group | Hitachi Construction vs. GREENX METALS LTD |
| CSX vs. JAPAN AIRLINES | CSX vs. Park Hotels Resorts | CSX vs. American Airlines Group | CSX vs. International Consolidated Airlines |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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