Correlation Between CyberTAN Technology and Hitron Technologies

Can any of the company-specific risk be diversified away by investing in both CyberTAN Technology and Hitron Technologies 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 CyberTAN Technology and Hitron Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CyberTAN Technology and Hitron Technologies, you can compare the effects of market volatilities on CyberTAN Technology and Hitron Technologies 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 CyberTAN Technology with a short position of Hitron Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberTAN Technology and Hitron Technologies.

Diversification Opportunities for CyberTAN Technology and Hitron Technologies

0.91

Correlation Coefficient

CyberTAN Technology  Hitron Technologies

Almost no diversification

The 3 months correlation between CyberTAN and Hitron is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CyberTAN Technology and Hitron Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitron Technologies and CyberTAN Technology 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 CyberTAN Technology are associated (or correlated) with Hitron Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitron Technologies has no effect on the direction of CyberTAN Technology i.e., CyberTAN Technology and Hitron Technologies go up and down completely randomly.

Pair Corralation between CyberTAN Technology and Hitron Technologies

Assuming the 90 days trading horizon CyberTAN Technology is expected to under-perform the Hitron Technologies. In addition to that, CyberTAN Technology is 1.2 times more volatile than Hitron Technologies. It trades about -0.22 of its total potential returns per unit of risk. Hitron Technologies is currently generating about -0.17 per unit of volatility. If you would invest  3,000  in Hitron Technologies on December 30, 2024 and sell it today you would lose (430.00) from holding Hitron Technologies or give up 14.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

CyberTAN Technology  vs.  Hitron Technologies

CyberTAN Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days CyberTAN Technology 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 stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Hitron Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hitron Technologies 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 stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CyberTAN Technology and Hitron Technologies

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

The idea behind CyberTAN Technology and Hitron Technologies 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.