Correlation Between Hitek Global and Freshworks

Can any of the company-specific risk be diversified away by investing in both Hitek Global and Freshworks 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 Freshworks 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 Freshworks, you can compare the effects of market volatilities on Hitek Global and Freshworks 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 Freshworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitek Global and Freshworks.

Diversification Opportunities for Hitek Global and Freshworks

-0.08

Correlation Coefficient

Hitek Global  Freshworks

Good diversification

The 3 months correlation between Hitek and Freshworks is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hitek Global Ordinary and Freshworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshworks 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 Freshworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshworks has no effect on the direction of Hitek Global i.e., Hitek Global and Freshworks go up and down completely randomly.

Pair Corralation between Hitek Global and Freshworks

Given the investment horizon of 90 days Hitek Global is expected to generate 15.09 times less return on investment than Freshworks. But when comparing it to its historical volatility, Hitek Global Ordinary is 1.31 times less risky than Freshworks. It trades about 0.02 of its potential returns per unit of risk. Freshworks is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,169  in Freshworks on October 26, 2024 and sell it today you would earn a total of  635.00  from holding Freshworks or generate 54.32% return on investment over 90 days.

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

Hitek Global Ordinary  vs.  Freshworks

Hitek Global Ordinary

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hitek Global Ordinary are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Hitek Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Freshworks

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Freshworks are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Freshworks demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hitek Global and Freshworks

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

The idea behind Hitek Global Ordinary and Freshworks 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.