Correlation Between Halcyon Technology and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Halcyon Technology and BPS TECHNOLOGY 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 Halcyon Technology and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halcyon Technology Public and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Halcyon Technology and BPS TECHNOLOGY 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 Halcyon Technology with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halcyon Technology and BPS TECHNOLOGY.
Diversification Opportunities for Halcyon Technology and BPS TECHNOLOGY
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Halcyon and BPS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Halcyon Technology Public and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Halcyon Technology 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 Halcyon Technology Public are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Halcyon Technology i.e., Halcyon Technology and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Halcyon Technology and BPS TECHNOLOGY
Assuming the 90 days trading horizon Halcyon Technology Public is expected to generate 0.74 times more return on investment than BPS TECHNOLOGY. However, Halcyon Technology Public is 1.35 times less risky than BPS TECHNOLOGY. It trades about 0.1 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about 0.0 per unit of risk. If you would invest 271.00 in Halcyon Technology Public on August 29, 2024 and sell it today you would earn a total of 133.00 from holding Halcyon Technology Public or generate 49.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halcyon Technology Public vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Halcyon Technology Public |
| BPS TECHNOLOGY PUBLIC |
Halcyon Technology and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halcyon Technology and BPS TECHNOLOGY
The main advantage of trading using opposite Halcyon Technology and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halcyon Technology position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Halcyon Technology vs. MCS Steel Public | Halcyon Technology vs. Asia Plus Group | Halcyon Technology vs. Lalin Property Public | Halcyon Technology vs. Lam Soon Public |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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