Correlation Between HYBRIGENICS and Mid America
Can any of the company-specific risk be diversified away by investing in both HYBRIGENICS and Mid America 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 Mid America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYBRIGENICS A and Mid America Apartment Communities, you can compare the effects of market volatilities on HYBRIGENICS and Mid America 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 Mid America. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYBRIGENICS and Mid America.
Diversification Opportunities for HYBRIGENICS and Mid America
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HYBRIGENICS and Mid is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HYBRIGENICS A and Mid America Apartment Communit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid America Apartment 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 Mid America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid America Apartment has no effect on the direction of HYBRIGENICS i.e., HYBRIGENICS and Mid America go up and down completely randomly.
Pair Corralation between HYBRIGENICS and Mid America
Assuming the 90 days trading horizon HYBRIGENICS A is expected to generate 14.72 times more return on investment than Mid America. However, HYBRIGENICS is 14.72 times more volatile than Mid America Apartment Communities. It trades about 0.03 of its potential returns per unit of risk. Mid America Apartment Communities is currently generating about 0.04 per unit of risk. If you would invest 0.67 in HYBRIGENICS A on December 11, 2024 and sell it today you would lose (0.13) from holding HYBRIGENICS A or give up 19.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYBRIGENICS A vs. Mid America Apartment Communit
Performance |
| Timeline |
| HYBRIGENICS A |
| Mid America Apartment |
HYBRIGENICS and Mid America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYBRIGENICS and Mid America
The main advantage of trading using opposite HYBRIGENICS and Mid America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYBRIGENICS position performs unexpectedly, Mid America 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 Mid America will offset losses from the drop in Mid America's long position.| HYBRIGENICS vs. STORAGEVAULT CANADA INC | HYBRIGENICS vs. Jacquet Metal Service | HYBRIGENICS vs. GALENA MINING LTD | HYBRIGENICS vs. East Africa Metals |
| Mid America vs. Salesforce | Mid America vs. FONIX MOBILE PLC | Mid America vs. SALESFORCE INC CDR | Mid America vs. Charter Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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