Correlation Between Hitek Global and ADEIA P
Can any of the company-specific risk be diversified away by investing in both Hitek Global and ADEIA P 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 Hitek Global and ADEIA P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitek Global Ordinary and ADEIA P, you can compare the effects of market volatilities on Hitek Global and ADEIA P 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 Hitek Global with a short position of ADEIA P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and ADEIA P.
Diversification Opportunities for Hitek Global and ADEIA P
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hitek and ADEIA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and ADEIA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADEIA P and Hitek Global 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 Hitek Global Ordinary are associated (or correlated) with ADEIA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADEIA P has no effect on the direction of Hitek Global i.e., Hitek Global and ADEIA P go up and down completely randomly.
Pair Corralation between Hitek Global and ADEIA P
Given the investment horizon of 90 days Hitek Global Ordinary is expected to generate 8.75 times more return on investment than ADEIA P. However, Hitek Global is 8.75 times more volatile than ADEIA P. It trades about 0.09 of its potential returns per unit of risk. ADEIA P is currently generating about 0.03 per unit of risk. If you would invest 148.00 in Hitek Global Ordinary on August 24, 2024 and sell it today you would earn a total of 352.00 from holding Hitek Global Ordinary or generate 237.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hitek Global Ordinary vs. ADEIA P
Performance |
| Timeline |
| Hitek Global Ordinary |
| ADEIA P |
Hitek Global and ADEIA P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and ADEIA P
The main advantage of trading using opposite Hitek Global and ADEIA P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, ADEIA P 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 ADEIA P will offset losses from the drop in ADEIA P's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Envestnet | Hitek Global vs. Clearwater Analytics Holdings |
| ADEIA P vs. Enfusion | ADEIA P vs. Zeta Global Holdings | ADEIA P vs. Clearwater Analytics Holdings | ADEIA P vs. ON24 Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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