Correlation Between Actinogen Medical and Hub24
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Hub24 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 Actinogen Medical and Hub24 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Hub24, you can compare the effects of market volatilities on Actinogen Medical and Hub24 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 Actinogen Medical with a short position of Hub24. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Hub24.
Diversification Opportunities for Actinogen Medical and Hub24
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Actinogen and Hub24 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Hub24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub24 and Actinogen 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 Actinogen Medical are associated (or correlated) with Hub24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub24 has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Hub24 go up and down completely randomly.
Pair Corralation between Actinogen Medical and Hub24
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 1.28 times less return on investment than Hub24. In addition to that, Actinogen Medical is 4.04 times more volatile than Hub24. It trades about 0.02 of its total potential returns per unit of risk. Hub24 is currently generating about 0.1 per unit of volatility. If you would invest 2,736 in Hub24 on January 20, 2025 and sell it today you would earn a total of 3,837 from holding Hub24 or generate 140.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Hub24
Performance |
| Timeline |
| Actinogen Medical |
| Hub24 |
Actinogen Medical and Hub24 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Hub24
The main advantage of trading using opposite Actinogen Medical and Hub24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Hub24 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 Hub24 will offset losses from the drop in Hub24's long position.| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Macquarie Group | Actinogen Medical vs. Macquarie Group Ltd | Actinogen Medical vs. Challenger |
| Hub24 vs. Accent Resources NL | Hub24 vs. Hutchison Telecommunications | Hub24 vs. Energy Resources | Hub24 vs. GO2 People |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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