Correlation Between HYBRIGENICS and Continental
Can any of the company-specific risk be diversified away by investing in both HYBRIGENICS and Continental 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 HYBRIGENICS and Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYBRIGENICS A and Camden Property Trust, you can compare the effects of market volatilities on HYBRIGENICS and Continental 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 HYBRIGENICS with a short position of Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYBRIGENICS and Continental.
Diversification Opportunities for HYBRIGENICS and Continental
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HYBRIGENICS and Continental is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HYBRIGENICS A and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and HYBRIGENICS 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 HYBRIGENICS A are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of HYBRIGENICS i.e., HYBRIGENICS and Continental go up and down completely randomly.
Pair Corralation between HYBRIGENICS and Continental
Assuming the 90 days trading horizon HYBRIGENICS A is expected to under-perform the Continental. In addition to that, HYBRIGENICS is 4.42 times more volatile than Camden Property Trust. It trades about -0.11 of its total potential returns per unit of risk. Camden Property Trust is currently generating about 0.01 per unit of volatility. If you would invest 10,999 in Camden Property Trust on September 23, 2024 and sell it today you would earn a total of 1.00 from holding Camden Property Trust or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYBRIGENICS A vs. Camden Property Trust
Performance |
| Timeline |
| HYBRIGENICS A |
| Camden Property Trust |
HYBRIGENICS and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYBRIGENICS and Continental
The main advantage of trading using opposite HYBRIGENICS and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYBRIGENICS position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Apple Inc | HYBRIGENICS vs. Apple Inc |
| Continental vs. Equity Residential | Continental vs. AvalonBay Communities | Continental vs. UDR Inc | Continental vs. INVITATION HOMES DL |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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