Correlation Between Iveda Solutions and Hyster Yale

Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and Hyster Yale 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 Iveda Solutions and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iveda Solutions Warrant and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Iveda Solutions and Hyster Yale 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 Iveda Solutions with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Hyster Yale.

Diversification Opportunities for Iveda Solutions and Hyster Yale

-0.13

Correlation Coefficient

Iveda Solutions  Hyster Yale

Good diversification

The 3 months correlation between Iveda and Hyster is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions Warrant and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and Iveda Solutions 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 Iveda Solutions Warrant are associated (or correlated) with Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Hyster Yale go up and down completely randomly.

Pair Corralation between Iveda Solutions and Hyster Yale

Assuming the 90 days horizon Iveda Solutions Warrant is expected to generate 20.26 times more return on investment than Hyster Yale. However, Iveda Solutions is 20.26 times more volatile than Hyster Yale Materials Handling. It trades about 0.33 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.27 per unit of risk. If you would invest  4.94  in Iveda Solutions Warrant on September 27, 2024 and sell it today you would earn a total of  9.06  from holding Iveda Solutions Warrant or generate 183.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Iveda Solutions Warrant  vs.  Hyster Yale Materials Handling

Iveda Solutions Warrant

Risk-Adjusted Performance

28 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Iveda Solutions Warrant are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Iveda Solutions showed solid returns over the last few months and may actually be approaching a breakup point.

Hyster Yale Materials

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hyster Yale Materials Handling has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Iveda Solutions and Hyster Yale

The main advantage of trading using opposite Iveda Solutions and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.

The idea behind Iveda Solutions Warrant and Hyster Yale Materials Handling 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.