Correlation Between Hitachi Metals and Cascadia Acquisition
Can any of the company-specific risk be diversified away by investing in both Hitachi Metals and Cascadia Acquisition 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 Hitachi Metals and Cascadia Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Metals and Cascadia Acquisition Corp, you can compare the effects of market volatilities on Hitachi Metals and Cascadia Acquisition 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 Hitachi Metals with a short position of Cascadia Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Metals and Cascadia Acquisition.
Diversification Opportunities for Hitachi Metals and Cascadia Acquisition
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hitachi and Cascadia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Metals and Cascadia Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cascadia Acquisition Corp and Hitachi Metals 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 Hitachi Metals are associated (or correlated) with Cascadia Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cascadia Acquisition Corp has no effect on the direction of Hitachi Metals i.e., Hitachi Metals and Cascadia Acquisition go up and down completely randomly.
Pair Corralation between Hitachi Metals and Cascadia Acquisition
If you would invest 8.51 in Cascadia Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Cascadia Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitachi Metals vs. Cascadia Acquisition Corp
Performance |
| Timeline |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cascadia Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitachi Metals and Cascadia Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Metals and Cascadia Acquisition
The main advantage of trading using opposite Hitachi Metals and Cascadia Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Metals position performs unexpectedly, Cascadia Acquisition 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 Cascadia Acquisition will offset losses from the drop in Cascadia Acquisition's long position.| Hitachi Metals vs. Kite Realty Group | Hitachi Metals vs. Contagious Gaming | Hitachi Metals vs. The Gap, | Hitachi Metals vs. Coupang LLC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |