Correlation Between Hitachi and Beacon Redevelopment
Can any of the company-specific risk be diversified away by investing in both Hitachi and Beacon Redevelopment 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 and Beacon Redevelopment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Ltd ADR and Beacon Redevelopment, you can compare the effects of market volatilities on Hitachi and Beacon Redevelopment 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 with a short position of Beacon Redevelopment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi and Beacon Redevelopment.
Diversification Opportunities for Hitachi and Beacon Redevelopment
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hitachi and Beacon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Ltd ADR and Beacon Redevelopment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beacon Redevelopment and Hitachi 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 Ltd ADR are associated (or correlated) with Beacon Redevelopment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beacon Redevelopment has no effect on the direction of Hitachi i.e., Hitachi and Beacon Redevelopment go up and down completely randomly.
Pair Corralation between Hitachi and Beacon Redevelopment
If you would invest 5,130 in Hitachi Ltd ADR on September 13, 2024 and sell it today you would earn a total of 229.00 from holding Hitachi Ltd ADR or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hitachi Ltd ADR vs. Beacon Redevelopment
Performance |
| Timeline |
| Hitachi Ltd ADR |
| Beacon Redevelopment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitachi and Beacon Redevelopment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi and Beacon Redevelopment
The main advantage of trading using opposite Hitachi and Beacon Redevelopment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi position performs unexpectedly, Beacon Redevelopment 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 Beacon Redevelopment will offset losses from the drop in Beacon Redevelopment's long position.| Hitachi vs. Teijin | Hitachi vs. Jardine Matheson Holdings | Hitachi vs. Marubeni Corp ADR | Hitachi vs. Mitsubishi Corp |
| Beacon Redevelopment vs. National Health Scan | Beacon Redevelopment vs. RCABS Inc | Beacon Redevelopment vs. Umbra Applied Technologies | Beacon Redevelopment vs. Hitachi Ltd ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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