Correlation Between Hitechpros and Immersion

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

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

Diversification Opportunities for Hitechpros and Immersion

-0.43

Correlation Coefficient

Hitechpros  Immersion

Very good diversification

The 3 months correlation between Hitechpros and Immersion is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hitechpros and Immersion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion SA and Hitechpros 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 Hitechpros are associated (or correlated) with Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion SA has no effect on the direction of Hitechpros i.e., Hitechpros and Immersion go up and down completely randomly.

Pair Corralation between Hitechpros and Immersion

Assuming the 90 days trading horizon Hitechpros is expected to generate 0.3 times more return on investment than Immersion. However, Hitechpros is 3.33 times less risky than Immersion. It trades about 0.09 of its potential returns per unit of risk. Immersion SA is currently generating about 0.02 per unit of risk. If you would invest  1,570  in Hitechpros on April 24, 2025 and sell it today you would earn a total of  150.00  from holding Hitechpros or generate 9.55% return on investment over 90 days.

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

Hitechpros  vs.  Immersion SA

Hitechpros

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hitechpros are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Hitechpros may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Immersion SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immersion SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Immersion may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hitechpros and Immersion

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

The idea behind Hitechpros and Immersion SA 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.