Correlation Between MSAD INSURANCE and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both MSAD INSURANCE and HUDSON GLOBAL 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 MSAD INSURANCE and HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSAD INSURANCE and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on MSAD INSURANCE and HUDSON GLOBAL 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 MSAD INSURANCE with a short position of HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSAD INSURANCE and HUDSON GLOBAL.
Diversification Opportunities for MSAD INSURANCE and HUDSON GLOBAL
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MSAD and HUDSON is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MSAD INSURANCE and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL and MSAD INSURANCE 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 MSAD INSURANCE are associated (or correlated) with HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of MSAD INSURANCE i.e., MSAD INSURANCE and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between MSAD INSURANCE and HUDSON GLOBAL
Assuming the 90 days trading horizon MSAD INSURANCE is expected to generate 1.91 times less return on investment than HUDSON GLOBAL. But when comparing it to its historical volatility, MSAD INSURANCE is 2.04 times less risky than HUDSON GLOBAL. It trades about 0.06 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,370 in HUDSON GLOBAL INCDL 001 on August 30, 2024 and sell it today you would earn a total of 40.00 from holding HUDSON GLOBAL INCDL 001 or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MSAD INSURANCE vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| MSAD INSURANCE |
| HUDSON GLOBAL INCDL |
MSAD INSURANCE and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSAD INSURANCE and HUDSON GLOBAL
The main advantage of trading using opposite MSAD INSURANCE and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSAD INSURANCE position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| MSAD INSURANCE vs. Gladstone Investment | MSAD INSURANCE vs. CARSALESCOM | MSAD INSURANCE vs. MUTUIONLINE | MSAD INSURANCE vs. REGAL ASIAN INVESTMENTS |
| HUDSON GLOBAL vs. REINET INVESTMENTS SCA | HUDSON GLOBAL vs. Virtus Investment Partners | HUDSON GLOBAL vs. SEI INVESTMENTS | HUDSON GLOBAL vs. Apollo Investment Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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