Correlation Between Gohigh Data and HanS Laser

Can any of the company-specific risk be diversified away by investing in both Gohigh Data and HanS Laser 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 Gohigh Data and HanS Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gohigh Data Networks and HanS Laser Tech, you can compare the effects of market volatilities on Gohigh Data and HanS Laser 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 Gohigh Data with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gohigh Data and HanS Laser.

Diversification Opportunities for Gohigh Data and HanS Laser

0.0

Correlation Coefficient

Gohigh Data  HanS Laser

Pay attention - limited upside

The 3 months correlation between Gohigh and HanS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gohigh Data Networks and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Gohigh Data 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 Gohigh Data Networks are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Gohigh Data i.e., Gohigh Data and HanS Laser go up and down completely randomly.

Pair Corralation between Gohigh Data and HanS Laser

If you would invest (100.00) in Gohigh Data Networks on October 6, 2024 and sell it today you would earn a total of  100.00  from holding Gohigh Data Networks or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gohigh Data Networks  vs.  HanS Laser Tech

Gohigh Data Networks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gohigh Data Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Gohigh Data is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HanS Laser Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HanS Laser Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Gohigh Data and HanS Laser

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

The idea behind Gohigh Data Networks and HanS Laser Tech 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.