Correlation Between Herige SA and Haulotte Group
Can any of the company-specific risk be diversified away by investing in both Herige SA and Haulotte Group 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 Herige SA and Haulotte Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herige SA and Haulotte Group SA, you can compare the effects of market volatilities on Herige SA and Haulotte Group 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 Herige SA with a short position of Haulotte Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herige SA and Haulotte Group.
Diversification Opportunities for Herige SA and Haulotte Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Herige and Haulotte is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Herige SA and Haulotte Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haulotte Group SA and Herige SA 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 Herige SA are associated (or correlated) with Haulotte Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haulotte Group SA has no effect on the direction of Herige SA i.e., Herige SA and Haulotte Group go up and down completely randomly.
Pair Corralation between Herige SA and Haulotte Group
Assuming the 90 days trading horizon Herige SA is expected to under-perform the Haulotte Group. In addition to that, Herige SA is 1.5 times more volatile than Haulotte Group SA. It trades about -0.05 of its total potential returns per unit of risk. Haulotte Group SA is currently generating about 0.01 per unit of volatility. If you would invest 270.00 in Haulotte Group SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Haulotte Group SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Herige SA vs. Haulotte Group SA
Performance |
| Timeline |
| Herige SA |
| Haulotte Group SA |
Herige SA and Haulotte Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herige SA and Haulotte Group
The main advantage of trading using opposite Herige SA and Haulotte Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herige SA position performs unexpectedly, Haulotte Group 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 Haulotte Group will offset losses from the drop in Haulotte Group's long position.| Herige SA vs. Jacques Bogart SA | Herige SA vs. Passat Socit Anonyme | Herige SA vs. Stef SA | Herige SA vs. Haulotte Group SA |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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