Correlation Between Traton SE and HITACHI CONSTRMACHADR/2
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By analyzing existing cross correlation between Traton SE and HITACHI STRMACHADR2, you can compare the effects of market volatilities on Traton SE and HITACHI CONSTRMACHADR/2 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 Traton SE with a short position of HITACHI CONSTRMACHADR/2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traton SE and HITACHI CONSTRMACHADR/2.
Diversification Opportunities for Traton SE and HITACHI CONSTRMACHADR/2
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Traton and HITACHI is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Traton SE and HITACHI STRMACHADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITACHI CONSTRMACHADR/2 and Traton SE 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 Traton SE are associated (or correlated) with HITACHI CONSTRMACHADR/2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITACHI CONSTRMACHADR/2 has no effect on the direction of Traton SE i.e., Traton SE and HITACHI CONSTRMACHADR/2 go up and down completely randomly.
Pair Corralation between Traton SE and HITACHI CONSTRMACHADR/2
Assuming the 90 days trading horizon Traton SE is expected to generate 0.91 times more return on investment than HITACHI CONSTRMACHADR/2. However, Traton SE is 1.1 times less risky than HITACHI CONSTRMACHADR/2. It trades about 0.08 of its potential returns per unit of risk. HITACHI STRMACHADR2 is currently generating about 0.0 per unit of risk. If you would invest 1,979 in Traton SE on September 3, 2024 and sell it today you would earn a total of 891.00 from holding Traton SE or generate 45.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Traton SE vs. HITACHI STRMACHADR2
Performance |
| Timeline |
| Traton SE |
| HITACHI CONSTRMACHADR/2 |
Traton SE and HITACHI CONSTRMACHADR/2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traton SE and HITACHI CONSTRMACHADR/2
The main advantage of trading using opposite Traton SE and HITACHI CONSTRMACHADR/2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traton SE position performs unexpectedly, HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 will offset losses from the drop in HITACHI CONSTRMACHADR/2's long position.| Traton SE vs. CyberArk Software | Traton SE vs. Nordic Semiconductor ASA | Traton SE vs. USU Software AG | Traton SE vs. X FAB Silicon Foundries |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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