Correlation Between Hitek Global and Expensify
Can any of the company-specific risk be diversified away by investing in both Hitek Global and Expensify 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 Expensify 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 Expensify, you can compare the effects of market volatilities on Hitek Global and Expensify 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 Expensify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and Expensify.
Diversification Opportunities for Hitek Global and Expensify
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hitek and Expensify is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify 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 Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Hitek Global i.e., Hitek Global and Expensify go up and down completely randomly.
Pair Corralation between Hitek Global and Expensify
Given the investment horizon of 90 days Hitek Global Ordinary is expected to generate 2.44 times more return on investment than Expensify. However, Hitek Global is 2.44 times more volatile than Expensify. It trades about 0.04 of its potential returns per unit of risk. Expensify is currently generating about 0.0 per unit of risk. If you would invest 626.00 in Hitek Global Ordinary on August 31, 2024 and sell it today you would lose (495.00) from holding Hitek Global Ordinary or give up 79.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitek Global Ordinary vs. Expensify
Performance |
| Timeline |
| Hitek Global Ordinary |
| Expensify |
Hitek Global and Expensify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and Expensify
The main advantage of trading using opposite Hitek Global and Expensify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, Expensify 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 Expensify will offset losses from the drop in Expensify's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Envestnet | Hitek Global vs. Clearwater Analytics Holdings |
| Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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