Correlation Between Integrated Media and Hillcrest Energy
Can any of the company-specific risk be diversified away by investing in both Integrated Media and Hillcrest Energy 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 Integrated Media and Hillcrest Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Media Technology and Hillcrest Energy Technologies, you can compare the effects of market volatilities on Integrated Media and Hillcrest Energy 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 Integrated Media with a short position of Hillcrest Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Media and Hillcrest Energy.
Diversification Opportunities for Integrated Media and Hillcrest Energy
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integrated and Hillcrest is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and Hillcrest Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillcrest Energy Tec and Integrated Media 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 Integrated Media Technology are associated (or correlated) with Hillcrest Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillcrest Energy Tec has no effect on the direction of Integrated Media i.e., Integrated Media and Hillcrest Energy go up and down completely randomly.
Pair Corralation between Integrated Media and Hillcrest Energy
Given the investment horizon of 90 days Integrated Media is expected to generate 2.49 times less return on investment than Hillcrest Energy. But when comparing it to its historical volatility, Integrated Media Technology is 1.26 times less risky than Hillcrest Energy. It trades about 0.02 of its potential returns per unit of risk. Hillcrest Energy Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8.68 in Hillcrest Energy Technologies on November 3, 2024 and sell it today you would earn a total of 0.19 from holding Hillcrest Energy Technologies or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Media Technology vs. Hillcrest Energy Technologies
Performance |
| Timeline |
| Integrated Media Tec |
| Hillcrest Energy Tec |
Integrated Media and Hillcrest Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Media and Hillcrest Energy
The main advantage of trading using opposite Integrated Media and Hillcrest Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Media position performs unexpectedly, Hillcrest Energy 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 Hillcrest Energy will offset losses from the drop in Hillcrest Energy's long position.| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
| Hillcrest Energy vs. Deswell Industries | Hillcrest Energy vs. Ostin Technology Group | Hillcrest Energy vs. Interlink Electronics | Hillcrest Energy vs. SigmaTron International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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