Correlation Between Alarum Technologies and Hub Cyber

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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

AlarumHubDiversified AwayAlarumHubDiversified Away100%
-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Alarum and Hub is -0.55. 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 generate 0.57 times more return on investment than Hub Cyber. However, Alarum Technologies is 1.76 times less risky than Hub Cyber. It trades about 0.07 of its potential returns per unit of risk. Hub Cyber Security is currently generating about 0.0 per unit of risk. If you would invest  200.00  in Alarum Technologies on November 26, 2024 and sell it today you would earn a total of  544.00  from holding Alarum Technologies or generate 272.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Alarum Technologies  vs.  Hub Cyber Security

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100
JavaScript chart by amCharts 3.21.15ALAR HUBC
       Timeline  
Alarum Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Alarum Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb891011121314
Hub Cyber Security 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hub Cyber Security are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Hub Cyber exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.40.60.811.21.4

Alarum Technologies and Hub Cyber Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.82-5.11-3.4-1.680.01.382.784.185.58 0.0050.0100.0150.0200.025
JavaScript chart by amCharts 3.21.15ALAR HUBC
       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.
The idea behind Alarum Technologies and Hub Cyber Security pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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