Correlation Between Hiwin Technologies and Inmax Holding
Can any of the company-specific risk be diversified away by investing in both Hiwin Technologies and Inmax Holding 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 Hiwin Technologies and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiwin Technologies Corp and Inmax Holding Co, you can compare the effects of market volatilities on Hiwin Technologies and Inmax Holding 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 Hiwin Technologies with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiwin Technologies and Inmax Holding.
Diversification Opportunities for Hiwin Technologies and Inmax Holding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hiwin and Inmax is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hiwin Technologies Corp and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and Hiwin Technologies 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 Hiwin Technologies Corp are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of Hiwin Technologies i.e., Hiwin Technologies and Inmax Holding go up and down completely randomly.
Pair Corralation between Hiwin Technologies and Inmax Holding
Assuming the 90 days trading horizon Hiwin Technologies Corp is expected to generate 0.82 times more return on investment than Inmax Holding. However, Hiwin Technologies Corp is 1.22 times less risky than Inmax Holding. It trades about 0.04 of its potential returns per unit of risk. Inmax Holding Co is currently generating about 0.03 per unit of risk. If you would invest 23,500 in Hiwin Technologies Corp on September 24, 2024 and sell it today you would earn a total of 5,050 from holding Hiwin Technologies Corp or generate 21.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hiwin Technologies Corp vs. Inmax Holding Co
Performance |
Timeline |
Hiwin Technologies Corp |
Inmax Holding |
Hiwin Technologies and Inmax Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hiwin Technologies and Inmax Holding
The main advantage of trading using opposite Hiwin Technologies and Inmax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiwin Technologies position performs unexpectedly, Inmax Holding 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 Inmax Holding will offset losses from the drop in Inmax Holding's long position.Hiwin Technologies vs. Yang Ming Marine | Hiwin Technologies vs. Evergreen Marine Corp | Hiwin Technologies vs. Eva Airways Corp | Hiwin Technologies vs. U Ming Marine Transport |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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