Correlation Between Stingray and Haivision Systems
Can any of the company-specific risk be diversified away by investing in both Stingray and Haivision Systems 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 Stingray and Haivision Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stingray Group and Haivision Systems, you can compare the effects of market volatilities on Stingray and Haivision Systems 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 Stingray with a short position of Haivision Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stingray and Haivision Systems.
Diversification Opportunities for Stingray and Haivision Systems
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stingray and Haivision is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Stingray Group and Haivision Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haivision Systems and Stingray 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 Stingray Group are associated (or correlated) with Haivision Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haivision Systems has no effect on the direction of Stingray i.e., Stingray and Haivision Systems go up and down completely randomly.
Pair Corralation between Stingray and Haivision Systems
Assuming the 90 days trading horizon Stingray is expected to generate 1.02 times less return on investment than Haivision Systems. But when comparing it to its historical volatility, Stingray Group is 1.47 times less risky than Haivision Systems. It trades about 0.1 of its potential returns per unit of risk. Haivision Systems is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Haivision Systems on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Haivision Systems or generate 49.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stingray Group vs. Haivision Systems
Performance |
| Timeline |
| Stingray Group |
| Haivision Systems |
Stingray and Haivision Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stingray and Haivision Systems
The main advantage of trading using opposite Stingray and Haivision Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stingray position performs unexpectedly, Haivision Systems 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 Haivision Systems will offset losses from the drop in Haivision Systems' long position.The idea behind Stingray Group and Haivision Systems 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.| Haivision Systems vs. Northview Residential REIT | Haivision Systems vs. Winshear Gold Corp | Haivision Systems vs. Wilmington Capital Management | Haivision Systems vs. Till Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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