Correlation Between Paycom Soft and Himax Technologies

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

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

Diversification Opportunities for Paycom Soft and Himax Technologies

0.33

Correlation Coefficient

Paycom Soft  Himax Technologies

Weak diversification

The 3 months correlation between Paycom and Himax is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Paycom Soft and Himax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himax Technologies and Paycom Soft 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 Paycom Soft are associated (or correlated) with Himax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himax Technologies has no effect on the direction of Paycom Soft i.e., Paycom Soft and Himax Technologies go up and down completely randomly.

Pair Corralation between Paycom Soft and Himax Technologies

Given the investment horizon of 90 days Paycom Soft is expected to under-perform the Himax Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Paycom Soft is 1.68 times less risky than Himax Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Himax Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  916.00  in Himax Technologies on July 2, 2025 and sell it today you would lose (50.00) from holding Himax Technologies or give up 5.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Paycom Soft  vs.  Himax Technologies

Paycom Soft

Risk-Adjusted Performance

Weakest

Over the last 90 days Paycom Soft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Paycom Soft is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Himax Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Himax Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Himax Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Paycom Soft and Himax Technologies

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

The idea behind Paycom Soft and Himax 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.