Correlation Between Meridianlink and Hitek Global
Can any of the company-specific risk be diversified away by investing in both Meridianlink and Hitek Global 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 Meridianlink and Hitek Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridianlink and Hitek Global Ordinary, you can compare the effects of market volatilities on Meridianlink and Hitek Global 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 Meridianlink with a short position of Hitek Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridianlink and Hitek Global.
Diversification Opportunities for Meridianlink and Hitek Global
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meridianlink and Hitek is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Meridianlink and Hitek Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitek Global Ordinary and Meridianlink 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 Meridianlink are associated (or correlated) with Hitek Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitek Global Ordinary has no effect on the direction of Meridianlink i.e., Meridianlink and Hitek Global go up and down completely randomly.
Pair Corralation between Meridianlink and Hitek Global
Given the investment horizon of 90 days Meridianlink is expected to generate 0.94 times more return on investment than Hitek Global. However, Meridianlink is 1.07 times less risky than Hitek Global. It trades about 0.06 of its potential returns per unit of risk. Hitek Global Ordinary is currently generating about -0.14 per unit of risk. If you would invest 2,237 in Meridianlink on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Meridianlink or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridianlink vs. Hitek Global Ordinary
Performance |
| Timeline |
| Meridianlink |
| Hitek Global Ordinary |
Meridianlink and Hitek Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridianlink and Hitek Global
The main advantage of trading using opposite Meridianlink and Hitek Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridianlink position performs unexpectedly, Hitek Global 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 Hitek Global will offset losses from the drop in Hitek Global's long position.| Meridianlink vs. CoreCard Corp | Meridianlink vs. PROS Holdings | Meridianlink vs. Enfusion | Meridianlink vs. Paylocity Holdng |
| Hitek Global vs. Enfusion | Hitek Global vs. E2open Parent Holdings | Hitek Global vs. Envestnet | Hitek Global vs. Clearwater Analytics Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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