Correlation Between Ultra Clean and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Ultra Clean and Hong Kong 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 Ultra Clean and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Clean Holdings and Hong Kong Exchanges, you can compare the effects of market volatilities on Ultra Clean and Hong Kong 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 Ultra Clean with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Hong Kong.
Diversification Opportunities for Ultra Clean and Hong Kong
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ultra and Hong is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and Hong Kong Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Exchanges and Ultra Clean 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 Ultra Clean Holdings are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Exchanges has no effect on the direction of Ultra Clean i.e., Ultra Clean and Hong Kong go up and down completely randomly.
Pair Corralation between Ultra Clean and Hong Kong
Assuming the 90 days horizon Ultra Clean Holdings is expected to generate 1.22 times more return on investment than Hong Kong. However, Ultra Clean is 1.22 times more volatile than Hong Kong Exchanges. It trades about 0.22 of its potential returns per unit of risk. Hong Kong Exchanges is currently generating about -0.07 per unit of risk. If you would invest 3,480 in Ultra Clean Holdings on October 25, 2024 and sell it today you would earn a total of 240.00 from holding Ultra Clean Holdings or generate 6.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ultra Clean Holdings vs. Hong Kong Exchanges
Performance |
Timeline |
Ultra Clean Holdings |
Hong Kong Exchanges |
Ultra Clean and Hong Kong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ultra Clean and Hong Kong
The main advantage of trading using opposite Ultra Clean and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.Ultra Clean vs. ASML Holding NV | Ultra Clean vs. Applied Materials | Ultra Clean vs. KLA Corporation | Ultra Clean vs. Teradyne |
Hong Kong vs. Broadridge Financial Solutions | Hong Kong vs. KINGBOARD CHEMICAL | Hong Kong vs. Liberty Broadband | Hong Kong vs. Shin Etsu Chemical Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |