Correlation Between Alarum Technologies and Hub Cyber
Can any of the company-specific risk be diversified away by investing in both Alarum Technologies and Hub Cyber 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 Alarum Technologies and Hub Cyber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarum Technologies and Hub Cyber Security, you can compare the effects of market volatilities on Alarum Technologies and Hub Cyber 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 Alarum Technologies with a short position of Hub Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarum Technologies and Hub Cyber.
Diversification Opportunities for Alarum Technologies and Hub Cyber
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alarum and Hub is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Alarum Technologies and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security and Alarum Technologies 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 Alarum Technologies are associated (or correlated) with Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of Alarum Technologies i.e., Alarum Technologies and Hub Cyber go up and down completely randomly.
Pair Corralation between Alarum Technologies and Hub Cyber
Given the investment horizon of 90 days Alarum Technologies is expected to under-perform the Hub Cyber. In addition to that, Alarum Technologies is 1.3 times more volatile than Hub Cyber Security. It trades about -0.03 of its total potential returns per unit of risk. Hub Cyber Security is currently generating about 0.11 per unit of volatility. If you would invest 47.00 in Hub Cyber Security on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Hub Cyber Security or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarum Technologies vs. Hub Cyber Security
Performance |
| Timeline |
| Alarum Technologies |
| Hub Cyber Security |
Alarum Technologies and Hub Cyber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarum Technologies and Hub Cyber
The main advantage of trading using opposite Alarum Technologies and Hub Cyber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarum Technologies position performs unexpectedly, Hub Cyber 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 Hub Cyber will offset losses from the drop in Hub Cyber's long position.| Alarum Technologies vs. GigaCloud Technology Class | Alarum Technologies vs. Telos Corp | Alarum Technologies vs. Cemtrex | Alarum Technologies vs. authID Inc |
| Hub Cyber vs. GigaCloud Technology Class | Hub Cyber vs. Telos Corp | Hub Cyber vs. Cemtrex | Hub Cyber vs. authID Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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