Correlation Between HOYA and Sysmex Corp

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

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

Diversification Opportunities for HOYA and Sysmex Corp

0.44

Correlation Coefficient

HOYA  Sysmex Corp

Very weak diversification

The 3 months correlation between HOYA and Sysmex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Corp. and Sysmex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex Corp and HOYA 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 HOYA Corporation are associated (or correlated) with Sysmex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex Corp has no effect on the direction of HOYA i.e., HOYA and Sysmex Corp go up and down completely randomly.

Pair Corralation between HOYA and Sysmex Corp

Assuming the 90 days horizon HOYA is expected to generate 19.86 times less return on investment than Sysmex Corp. In addition to that, HOYA is 2.51 times more volatile than Sysmex Corp. It trades about 0.0 of its total potential returns per unit of risk. Sysmex Corp is currently generating about 0.04 per unit of volatility. If you would invest  1,834  in Sysmex Corp on December 28, 2024 and sell it today you would earn a total of  53.00  from holding Sysmex Corp or generate 2.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

HOYA Corp.  vs.  Sysmex Corp

HOYA

Risk-Adjusted Performance

Very Weak

Over the last 90 days HOYA Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HOYA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Sysmex Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sysmex Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Sysmex Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HOYA and Sysmex Corp

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

The idea behind HOYA Corporation and Sysmex Corp 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.