Correlation Between Matterport and Himax Technologies

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Can any of the company-specific risk be diversified away by investing in both Matterport and Himax Technologies 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 Matterport and Himax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matterport and Himax Technologies, you can compare the effects of market volatilities on Matterport and Himax Technologies 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 Matterport with a short position of Himax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matterport and Himax Technologies.

Diversification Opportunities for Matterport and Himax Technologies

MatterportHimaxDiversified AwayMatterportHimaxDiversified Away100%
0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Matterport and Himax is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Matterport and Himax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himax Technologies and Matterport 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 Matterport are associated (or correlated) with Himax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himax Technologies has no effect on the direction of Matterport i.e., Matterport and Himax Technologies go up and down completely randomly.

Pair Corralation between Matterport and Himax Technologies

Given the investment horizon of 90 days Matterport is expected to generate 5.62 times less return on investment than Himax Technologies. But when comparing it to its historical volatility, Matterport is 7.42 times less risky than Himax Technologies. It trades about 0.19 of its potential returns per unit of risk. Himax Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  544.00  in Himax Technologies on December 3, 2024 and sell it today you would earn a total of  386.00  from holding Himax Technologies or generate 70.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Matterport  vs.  Himax Technologies

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 20406080100120140
JavaScript chart by amCharts 3.21.15MTTR HIMX
       Timeline  
Matterport 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Matterport are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Matterport reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFebMar4.64.74.84.955.15.25.35.4
Himax Technologies 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Himax Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Himax Technologies showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFebMar67891011121314

Matterport and Himax Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.64-2.72-1.81-0.90.01521.02.03.04.0 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15MTTR HIMX
       Returns  

Pair Trading with Matterport and Himax Technologies

The main advantage of trading using opposite Matterport and Himax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matterport position performs unexpectedly, Himax Technologies 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 Himax Technologies will offset losses from the drop in Himax Technologies' long position.
The idea behind Matterport and Himax Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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