Correlation Between Hawaiian Electric and YH Dimri
Can any of the company-specific risk be diversified away by investing in both Hawaiian Electric and YH Dimri 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 Hawaiian Electric and YH Dimri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Electric Industries and YH Dimri Construction, you can compare the effects of market volatilities on Hawaiian Electric and YH Dimri 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 Hawaiian Electric with a short position of YH Dimri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Electric and YH Dimri.
Diversification Opportunities for Hawaiian Electric and YH Dimri
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hawaiian and DIMRI is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Electric Industries and YH Dimri Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YH Dimri Construction and Hawaiian Electric 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 Hawaiian Electric Industries are associated (or correlated) with YH Dimri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YH Dimri Construction has no effect on the direction of Hawaiian Electric i.e., Hawaiian Electric and YH Dimri go up and down completely randomly.
Pair Corralation between Hawaiian Electric and YH Dimri
Allowing for the 90-day total investment horizon Hawaiian Electric Industries is expected to generate 1.89 times more return on investment than YH Dimri. However, Hawaiian Electric is 1.89 times more volatile than YH Dimri Construction. It trades about 0.19 of its potential returns per unit of risk. YH Dimri Construction is currently generating about -0.26 per unit of risk. If you would invest 933.00 in Hawaiian Electric Industries on December 4, 2024 and sell it today you would earn a total of 114.00 from holding Hawaiian Electric Industries or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Hawaiian Electric Industries vs. YH Dimri Construction
Performance |
| Timeline |
| Hawaiian Electric |
| YH Dimri Construction |
Hawaiian Electric and YH Dimri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Electric and YH Dimri
The main advantage of trading using opposite Hawaiian Electric and YH Dimri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Electric position performs unexpectedly, YH Dimri 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 YH Dimri will offset losses from the drop in YH Dimri's long position.| Hawaiian Electric vs. DTE Energy | ||
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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