Correlation Between Hitek Global and SmartRent
Can any of the company-specific risk be diversified away by investing in both Hitek Global and SmartRent 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 SmartRent 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 SmartRent, you can compare the effects of market volatilities on Hitek Global and SmartRent 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 SmartRent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and SmartRent.
Diversification Opportunities for Hitek Global and SmartRent
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hitek and SmartRent is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and SmartRent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartRent 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 SmartRent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartRent has no effect on the direction of Hitek Global i.e., Hitek Global and SmartRent go up and down completely randomly.
Pair Corralation between Hitek Global and SmartRent
Given the investment horizon of 90 days Hitek Global Ordinary is expected to generate 1.08 times more return on investment than SmartRent. However, Hitek Global is 1.08 times more volatile than SmartRent. It trades about -0.11 of its potential returns per unit of risk. SmartRent is currently generating about -0.26 per unit of risk. If you would invest 144.00 in Hitek Global Ordinary on November 2, 2024 and sell it today you would lose (11.00) from holding Hitek Global Ordinary or give up 7.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hitek Global Ordinary vs. SmartRent
Performance |
| Timeline |
| Hitek Global Ordinary |
| SmartRent |
Hitek Global and SmartRent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitek Global and SmartRent
The main advantage of trading using opposite Hitek Global and SmartRent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitek Global position performs unexpectedly, SmartRent 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 SmartRent will offset losses from the drop in SmartRent's long position.| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Clearwater Analytics Holdings | Hitek Global vs. Expensify |
| SmartRent vs. Enfusion | SmartRent vs. E2open Parent Holdings | SmartRent vs. Hitek Global Ordinary | SmartRent 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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