Correlation Between Hoya Corp and SSC Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hoya Corp and SSC Technologies 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 Corp and SSC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoya Corp ADR and SSC Technologies, you can compare the effects of market volatilities on Hoya Corp and SSC Technologies 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 Corp with a short position of SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoya Corp and SSC Technologies.

Diversification Opportunities for Hoya Corp and SSC Technologies

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between HOCPY and SSC Technologies is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hoya Corp ADR and SSC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies and Hoya Corp 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 Corp ADR are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies has no effect on the direction of Hoya Corp i.e., Hoya Corp and SSC Technologies go up and down completely randomly.

Pair Corralation between Hoya Corp and SSC Technologies

Assuming the 90 days horizon Hoya Corp ADR is expected to generate 1.27 times more return on investment than SSC Technologies. However, Hoya Corp is 1.27 times more volatile than SSC Technologies. It trades about -0.01 of its potential returns per unit of risk. SSC Technologies is currently generating about -0.03 per unit of risk. If you would invest  12,275  in Hoya Corp ADR on August 30, 2022 and sell it today you would lose (1,825)  from holding Hoya Corp ADR or give up 14.87% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Hoya Corp ADR  vs.  SSC Technologies

 Performance (%) 
       Timeline  
Hoya Corp ADR 
HOCPY Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hoya Corp ADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Hoya Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

HOCPY Price Channel

SSC Technologies 
SSC Technologies Performance
0 of 100
Over the last 90 days SSC Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish 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.

SSC Technologies Price Channel

Hoya Corp and SSC Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hoya Corp and SSC Technologies

The main advantage of trading using opposite Hoya Corp and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoya Corp position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.
Hoya Corp vs. Intuitive Surg
Hoya Corp vs. Becton Dickinson And
Hoya Corp vs. ResMed Inc
The idea behind Hoya Corp ADR and SSC Technologies 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.
SSC Technologies vs. Salesforce
SSC Technologies vs. Intuit Inc
SSC Technologies vs. Servicenow
SSC Technologies vs. Snowflake Inc Cl
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go