Correlation Between VMware and Hi Sun
Can any of the company-specific risk be diversified away by investing in both VMware and Hi Sun 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 VMware and Hi Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VMware Inc and Hi Sun Technology, you can compare the effects of market volatilities on VMware and Hi Sun 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 VMware with a short position of Hi Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of VMware and Hi Sun.
Diversification Opportunities for VMware and Hi Sun
Excellent diversification
The 3 months correlation between VMware and HISNF is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc and Hi Sun Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Sun Technology and VMware 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 VMware Inc are associated (or correlated) with Hi Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Sun Technology has no effect on the direction of VMware i.e., VMware and Hi Sun go up and down completely randomly.
Pair Corralation between VMware and Hi Sun
If you would invest 3.20 in Hi Sun Technology on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Hi Sun Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
VMware Inc vs. Hi Sun Technology
Performance |
| Timeline |
| VMware Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hi Sun Technology |
VMware and Hi Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VMware and Hi Sun
The main advantage of trading using opposite VMware and Hi Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VMware position performs unexpectedly, Hi Sun 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 Hi Sun will offset losses from the drop in Hi Sun's long position.The idea behind VMware Inc and Hi Sun Technology 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.| Hi Sun vs. Zerify Inc | Hi Sun vs. Smartmetric | Hi Sun vs. World Health Energy | Hi Sun vs. Plyzer Technologies |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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