Correlation Between Huabao International and Celestica
Can any of the company-specific risk be diversified away by investing in both Huabao International and Celestica 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 Huabao International and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huabao International Holdings and Celestica, you can compare the effects of market volatilities on Huabao International and Celestica 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 Huabao International with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huabao International and Celestica.
Diversification Opportunities for Huabao International and Celestica
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huabao and Celestica is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Huabao International Holdings and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Huabao International 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 Huabao International Holdings are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Huabao International i.e., Huabao International and Celestica go up and down completely randomly.
Pair Corralation between Huabao International and Celestica
If you would invest 4,555 in Celestica on September 12, 2024 and sell it today you would earn a total of 4,443 from holding Celestica or generate 97.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.69% |
| Values | Daily Returns |
Huabao International Holdings vs. Celestica
Performance |
| Timeline |
| Huabao International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Celestica |
Huabao International and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huabao International and Celestica
The main advantage of trading using opposite Huabao International and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huabao International position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Huabao International vs. Teleflex Incorporated | Huabao International vs. IPG Photonics | Huabao International vs. ClearOne | Huabao International vs. Amgen Inc |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |