Correlation Between Hitek Global and CoreCard Corp
Can any of the company-specific risk be diversified away by investing in both Hitek Global and CoreCard Corp 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 CoreCard Corp 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 CoreCard Corp, you can compare the effects of market volatilities on Hitek Global and CoreCard Corp 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 CoreCard Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and CoreCard Corp.
Diversification Opportunities for Hitek Global and CoreCard Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hitek and CoreCard is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and CoreCard Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCard Corp 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 CoreCard Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCard Corp has no effect on the direction of Hitek Global i.e., Hitek Global and CoreCard Corp go up and down completely randomly.
Pair Corralation between Hitek Global and CoreCard Corp
Given the investment horizon of 90 days Hitek Global Ordinary is expected to under-perform the CoreCard Corp. In addition to that, Hitek Global is 1.48 times more volatile than CoreCard Corp. It trades about -0.05 of its total potential returns per unit of risk. CoreCard Corp is currently generating about 0.12 per unit of volatility. If you would invest 1,408 in CoreCard Corp on September 2, 2024 and sell it today you would earn a total of 690.00 from holding CoreCard Corp or generate 49.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitek Global Ordinary vs. CoreCard Corp
Performance |
| Timeline |
| Hitek Global Ordinary |
| CoreCard Corp |
Hitek Global and CoreCard Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and CoreCard Corp
The main advantage of trading using opposite Hitek Global and CoreCard Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, CoreCard Corp 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 CoreCard Corp will offset losses from the drop in CoreCard Corp's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Envestnet | Hitek Global vs. Clearwater Analytics Holdings |
| CoreCard Corp vs. Meridianlink | CoreCard Corp vs. Clearwater Analytics Holdings | CoreCard Corp vs. Expensify | CoreCard Corp vs. Envestnet |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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