Correlation Between Hitek Global and Ebix
Can any of the company-specific risk be diversified away by investing in both Hitek Global and Ebix 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 Ebix 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 Ebix Inc, you can compare the effects of market volatilities on Hitek Global and Ebix 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 Ebix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and Ebix.
Diversification Opportunities for Hitek Global and Ebix
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hitek and Ebix is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and Ebix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebix Inc 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 Ebix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebix Inc has no effect on the direction of Hitek Global i.e., Hitek Global and Ebix go up and down completely randomly.
Pair Corralation between Hitek Global and Ebix
If you would invest 195.00 in Hitek Global Ordinary on September 4, 2024 and sell it today you would lose (67.00) from holding Hitek Global Ordinary or give up 34.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
Hitek Global Ordinary vs. Ebix Inc
Performance |
| Timeline |
| Hitek Global Ordinary |
| Ebix Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitek Global and Ebix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and Ebix
The main advantage of trading using opposite Hitek Global and Ebix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, Ebix 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 Ebix will offset losses from the drop in Ebix's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Clearwater Analytics Holdings | Hitek Global vs. Expensify |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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