Correlation Between Advantage Solutions and Hannan Metals
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Hannan Metals 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 Advantage Solutions and Hannan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Hannan Metals, you can compare the effects of market volatilities on Advantage Solutions and Hannan Metals 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 Advantage Solutions with a short position of Hannan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Hannan Metals.
Diversification Opportunities for Advantage Solutions and Hannan Metals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advantage and Hannan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Hannan Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannan Metals and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Hannan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannan Metals has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Hannan Metals go up and down completely randomly.
Pair Corralation between Advantage Solutions and Hannan Metals
Assuming the 90 days horizon Advantage Solutions is expected to under-perform the Hannan Metals. In addition to that, Advantage Solutions is 1.48 times more volatile than Hannan Metals. It trades about -0.19 of its total potential returns per unit of risk. Hannan Metals is currently generating about 0.19 per unit of volatility. If you would invest 39.00 in Hannan Metals on September 24, 2024 and sell it today you would earn a total of 10.00 from holding Hannan Metals or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. Hannan Metals
Performance |
| Timeline |
| Advantage Solutions |
| Hannan Metals |
Advantage Solutions and Hannan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Hannan Metals
The main advantage of trading using opposite Advantage Solutions and Hannan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Hannan Metals 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 Hannan Metals will offset losses from the drop in Hannan Metals' long position.| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. Aquagold International |
| Hannan Metals vs. Puma Exploration | Hannan Metals vs. Sixty North Gold | Hannan Metals vs. Red Pine Exploration | Hannan Metals vs. Altamira Gold 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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