Correlation Between Phihong Technology and Harman International
Can any of the company-specific risk be diversified away by investing in both Phihong Technology and Harman International 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 Phihong Technology and Harman International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phihong Technology Co and Harman International Industries, you can compare the effects of market volatilities on Phihong Technology and Harman International 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 Phihong Technology with a short position of Harman International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phihong Technology and Harman International.
Diversification Opportunities for Phihong Technology and Harman International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Phihong and Harman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Phihong Technology Co and Harman International Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harman International and Phihong 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 Phihong Technology Co are associated (or correlated) with Harman International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harman International has no effect on the direction of Phihong Technology i.e., Phihong Technology and Harman International go up and down completely randomly.
Pair Corralation between Phihong Technology and Harman International
If you would invest (100.00) in Harman International Industries on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Harman International Industries or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Phihong Technology Co vs. Harman International Industrie
Performance |
| Timeline |
| Phihong Technology |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Phihong Technology and Harman International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phihong Technology and Harman International
The main advantage of trading using opposite Phihong Technology and Harman International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phihong Technology position performs unexpectedly, Harman International 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 Harman International will offset losses from the drop in Harman International's long position.| Phihong Technology vs. Ichia Technologies | Phihong Technology vs. Elan Microelectronics Corp | Phihong Technology vs. Amtran Technology Co | Phihong Technology vs. Sunplus Technology Co |
| Harman International vs. Compania Cervecerias Unidas | Harman International vs. CanSino Biologics | Harman International vs. Willamette Valley Vineyards | Harman International vs. Constellation Brands Class |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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