Correlation Between AVITA Medical and HUTCHISON TELECOMM
Can any of the company-specific risk be diversified away by investing in both AVITA Medical and HUTCHISON TELECOMM 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 AVITA Medical and HUTCHISON TELECOMM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVITA Medical and HUTCHISON TELECOMM, you can compare the effects of market volatilities on AVITA Medical and HUTCHISON TELECOMM 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 AVITA Medical with a short position of HUTCHISON TELECOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVITA Medical and HUTCHISON TELECOMM.
Diversification Opportunities for AVITA Medical and HUTCHISON TELECOMM
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVITA and HUTCHISON is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AVITA Medical and HUTCHISON TELECOMM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHISON TELECOMM and AVITA Medical 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 AVITA Medical are associated (or correlated) with HUTCHISON TELECOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHISON TELECOMM has no effect on the direction of AVITA Medical i.e., AVITA Medical and HUTCHISON TELECOMM go up and down completely randomly.
Pair Corralation between AVITA Medical and HUTCHISON TELECOMM
Assuming the 90 days trading horizon AVITA Medical is expected to generate 0.91 times more return on investment than HUTCHISON TELECOMM. However, AVITA Medical is 1.1 times less risky than HUTCHISON TELECOMM. It trades about 0.04 of its potential returns per unit of risk. HUTCHISON TELECOMM is currently generating about -0.01 per unit of risk. If you would invest 155.00 in AVITA Medical on October 11, 2024 and sell it today you would earn a total of 101.00 from holding AVITA Medical or generate 65.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVITA Medical vs. HUTCHISON TELECOMM
Performance |
| Timeline |
| AVITA Medical |
| HUTCHISON TELECOMM |
AVITA Medical and HUTCHISON TELECOMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVITA Medical and HUTCHISON TELECOMM
The main advantage of trading using opposite AVITA Medical and HUTCHISON TELECOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVITA Medical position performs unexpectedly, HUTCHISON TELECOMM 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 HUTCHISON TELECOMM will offset losses from the drop in HUTCHISON TELECOMM's long position.| AVITA Medical vs. MELIA HOTELS | AVITA Medical vs. SK TELECOM TDADR | AVITA Medical vs. Playa Hotels Resorts | AVITA Medical vs. EMPEROR ENT HOTEL |
| HUTCHISON TELECOMM vs. ANGLO ASIAN MINING | HUTCHISON TELECOMM vs. Endeavour Mining PLC | HUTCHISON TELECOMM vs. Meiko Electronics Co | HUTCHISON TELECOMM vs. Globex Mining Enterprises |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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