Correlation Between 1StdibsCom and Hoya Corp

Can any of the company-specific risk be diversified away by investing in both 1StdibsCom and Hoya 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 1StdibsCom and Hoya Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1StdibsCom and Hoya Corp, you can compare the effects of market volatilities on 1StdibsCom and Hoya 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 1StdibsCom with a short position of Hoya Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1StdibsCom and Hoya Corp.

Diversification Opportunities for 1StdibsCom and Hoya Corp

-0.24

Correlation Coefficient

1StdibsCom  Hoya Corp

Very good diversification

The 3 months correlation between 1StdibsCom and Hoya is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding 1StdibsCom and Hoya Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoya Corp and 1StdibsCom 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 1StdibsCom are associated (or correlated) with Hoya Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoya Corp has no effect on the direction of 1StdibsCom i.e., 1StdibsCom and Hoya Corp go up and down completely randomly.

Pair Corralation between 1StdibsCom and Hoya Corp

Given the investment horizon of 90 days 1StdibsCom is expected to generate 1.26 times less return on investment than Hoya Corp. In addition to that, 1StdibsCom is 1.25 times more volatile than Hoya Corp. It trades about 0.03 of its total potential returns per unit of risk. Hoya Corp is currently generating about 0.05 per unit of volatility. If you would invest  12,456  in Hoya Corp on May 18, 2025 and sell it today you would earn a total of  730.00  from holding Hoya Corp or generate 5.86% return on investment over 90 days.

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

1StdibsCom  vs.  Hoya Corp

1StdibsCom

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 1StdibsCom are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, 1StdibsCom is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Hoya Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Hoya Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Hoya Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with 1StdibsCom and Hoya Corp

The main advantage of trading using opposite 1StdibsCom and Hoya Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1StdibsCom position performs unexpectedly, Hoya 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 Hoya Corp will offset losses from the drop in Hoya Corp's long position.

The idea behind 1StdibsCom and Hoya 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.