Correlation Between HOYA and CHINA STATE
Can any of the company-specific risk be diversified away by investing in both HOYA and CHINA STATE 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 HOYA and CHINA STATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOYA Corporation and CHINA STATE STRU, you can compare the effects of market volatilities on HOYA and CHINA STATE 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 HOYA with a short position of CHINA STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA and CHINA STATE.
Diversification Opportunities for HOYA and CHINA STATE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOYA and CHINA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Corp. and CHINA STATE STRU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA STATE STRU and HOYA 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 HOYA Corporation are associated (or correlated) with CHINA STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA STATE STRU has no effect on the direction of HOYA i.e., HOYA and CHINA STATE go up and down completely randomly.
Pair Corralation between HOYA and CHINA STATE
If you would invest 135.00 in CHINA STATE STRU on October 1, 2024 and sell it today you would earn a total of 0.00 from holding CHINA STATE STRU or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
HOYA Corp. vs. CHINA STATE STRU
Performance |
| Timeline |
| HOYA |
| CHINA STATE STRU |
HOYA and CHINA STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA and CHINA STATE
The main advantage of trading using opposite HOYA and CHINA STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA position performs unexpectedly, CHINA STATE 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 CHINA STATE will offset losses from the drop in CHINA STATE's long position.| HOYA vs. Intuitive Surgical | HOYA vs. Resmed Inc DRC | HOYA vs. ResMed Inc | HOYA vs. Sartorius Stedim Biotech |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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