Correlation Between Hitek Global and Clearwater Analytics

Can any of the company-specific risk be diversified away by investing in both Hitek Global and Clearwater Analytics 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 Hitek Global and Clearwater Analytics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hitek Global Ordinary and Clearwater Analytics Holdings, you can compare the effects of market volatilities on Hitek Global and Clearwater Analytics 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 Hitek Global with a short position of Clearwater Analytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and Clearwater Analytics.

Diversification Opportunities for Hitek Global and Clearwater Analytics

-0.5

Correlation Coefficient

Hitek Global  Clearwater Analytics

Very good diversification

The 3 months correlation between Hitek and Clearwater is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and Clearwater Analytics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Analytics and Hitek Global 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 Hitek Global Ordinary are associated (or correlated) with Clearwater Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Analytics has no effect on the direction of Hitek Global i.e., Hitek Global and Clearwater Analytics go up and down completely randomly.

Pair Corralation between Hitek Global and Clearwater Analytics

Given the investment horizon of 90 days Hitek Global Ordinary is expected to generate 2.31 times more return on investment than Clearwater Analytics. However, Hitek Global is 2.31 times more volatile than Clearwater Analytics Holdings. It trades about -0.03 of its potential returns per unit of risk. Clearwater Analytics Holdings is currently generating about -0.15 per unit of risk. If you would invest  139.00  in Hitek Global Ordinary on October 11, 2024 and sell it today you would lose (6.00) from holding Hitek Global Ordinary or give up 4.32% of portfolio value over 90 days.

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

Hitek Global Ordinary  vs.  Clearwater Analytics Holdings

Hitek Global Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hitek Global Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Clearwater Analytics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Clearwater Analytics Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Clearwater Analytics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Hitek Global and Clearwater Analytics

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

The idea behind Hitek Global Ordinary and Clearwater Analytics Holdings 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.