Correlation Between Premier Marketing and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and Halcyon Technology 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 Premier Marketing and Halcyon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and Halcyon Technology Public, you can compare the effects of market volatilities on Premier Marketing and Halcyon Technology 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 Premier Marketing with a short position of Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and Halcyon Technology.
Diversification Opportunities for Premier Marketing and Halcyon Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Premier and Halcyon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon Technology Public and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Premier Marketing i.e., Premier Marketing and Halcyon Technology go up and down completely randomly.
Pair Corralation between Premier Marketing and Halcyon Technology
Assuming the 90 days horizon Premier Marketing is expected to generate 2.97 times less return on investment than Halcyon Technology. But when comparing it to its historical volatility, Premier Marketing Public is 2.39 times less risky than Halcyon Technology. It trades about 0.08 of its potential returns per unit of risk. Halcyon Technology Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Halcyon Technology Public on August 29, 2024 and sell it today you would earn a total of 133.00 from holding Halcyon Technology Public or generate 49.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Marketing Public vs. Halcyon Technology Public
Performance |
| Timeline |
| Premier Marketing Public |
| Halcyon Technology Public |
Premier Marketing and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and Halcyon Technology
The main advantage of trading using opposite Premier Marketing and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, Halcyon Technology 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 Halcyon Technology will offset losses from the drop in Halcyon Technology's long position.| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
| Halcyon Technology vs. MCS Steel Public | Halcyon Technology vs. Asia Plus Group | Halcyon Technology vs. Lalin Property Public | Halcyon Technology vs. Lam Soon Public |
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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