Correlation Between Marine Products and Helport AI

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

By analyzing existing cross correlation between Marine Products and Helport AI Limited, you can compare the effects of market volatilities on Marine Products and Helport AI 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 Marine Products with a short position of Helport AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Helport AI.

Diversification Opportunities for Marine Products and Helport AI

-0.21

Correlation Coefficient

Marine Products  Helport AI

Very good diversification

The 3 months correlation between Marine and Helport is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Helport AI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helport AI Limited and Marine Products 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 Marine Products are associated (or correlated) with Helport AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helport AI Limited has no effect on the direction of Marine Products i.e., Marine Products and Helport AI go up and down completely randomly.

Pair Corralation between Marine Products and Helport AI

Considering the 90-day investment horizon Marine Products is expected to generate 0.57 times more return on investment than Helport AI. However, Marine Products is 1.76 times less risky than Helport AI. It trades about -0.07 of its potential returns per unit of risk. Helport AI Limited is currently generating about -0.07 per unit of risk. If you would invest  917.00  in Marine Products on December 25, 2024 and sell it today you would lose (86.00) from holding Marine Products or give up 9.38% of portfolio value over 90 days.

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

Marine Products  vs.  Helport AI Limited

Marine Products

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marine Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating 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.

Helport AI Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helport AI Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Marine Products and Helport AI

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

The idea behind Marine Products and Helport AI Limited 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.