Correlation Between Hitachi Construction and 11880 Solutions
Can any of the company-specific risk be diversified away by investing in both Hitachi Construction and 11880 Solutions 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 11880 Solutions 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 11880 Solutions AG, you can compare the effects of market volatilities on Hitachi Construction and 11880 Solutions 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 11880 Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Construction and 11880 Solutions.
Diversification Opportunities for Hitachi Construction and 11880 Solutions
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hitachi and 11880 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Construction Machinery and 11880 Solutions AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11880 Solutions AG 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 11880 Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11880 Solutions AG has no effect on the direction of Hitachi Construction i.e., Hitachi Construction and 11880 Solutions go up and down completely randomly.
Pair Corralation between Hitachi Construction and 11880 Solutions
Assuming the 90 days horizon Hitachi Construction Machinery is expected to generate 0.46 times more return on investment than 11880 Solutions. However, Hitachi Construction Machinery is 2.15 times less risky than 11880 Solutions. It trades about 0.3 of its potential returns per unit of risk. 11880 Solutions AG is currently generating about -0.02 per unit of risk. If you would invest 2,040 in Hitachi Construction Machinery on October 22, 2024 and sell it today you would earn a total of 120.00 from holding Hitachi Construction Machinery or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitachi Construction Machinery vs. 11880 Solutions AG
Performance |
| Timeline |
| Hitachi Construction |
| 11880 Solutions AG |
Hitachi Construction and 11880 Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Construction and 11880 Solutions
The main advantage of trading using opposite Hitachi Construction and 11880 Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Construction position performs unexpectedly, 11880 Solutions 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 11880 Solutions will offset losses from the drop in 11880 Solutions' long position.| Hitachi Construction vs. Samsung Electronics Co | Hitachi Construction vs. AOI Electronics Co | Hitachi Construction vs. Siamgas And Petrochemicals | Hitachi Construction vs. Silicon Motion Technology |
| 11880 Solutions vs. Stewart Information Services | 11880 Solutions vs. Datadog | 11880 Solutions vs. GLG LIFE TECH | 11880 Solutions vs. SILVER BULLET DATA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |