Correlation Between Aptitude Software and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Aptitude Software and Hilton Food 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 Aptitude Software and Hilton Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptitude Software Group and Hilton Food Group, you can compare the effects of market volatilities on Aptitude Software and Hilton Food 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 Aptitude Software with a short position of Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptitude Software and Hilton Food.
Diversification Opportunities for Aptitude Software and Hilton Food
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aptitude and Hilton is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aptitude Software Group and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group and Aptitude Software 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 Aptitude Software Group are associated (or correlated) with Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Aptitude Software i.e., Aptitude Software and Hilton Food go up and down completely randomly.
Pair Corralation between Aptitude Software and Hilton Food
Assuming the 90 days trading horizon Aptitude Software Group is expected to under-perform the Hilton Food. In addition to that, Aptitude Software is 1.29 times more volatile than Hilton Food Group. It trades about -0.07 of its total potential returns per unit of risk. Hilton Food Group is currently generating about -0.02 per unit of volatility. If you would invest 90,539 in Hilton Food Group on October 25, 2024 and sell it today you would lose (4,339) from holding Hilton Food Group or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptitude Software Group vs. Hilton Food Group
Performance |
| Timeline |
| Aptitude Software |
| Hilton Food Group |
Aptitude Software and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptitude Software and Hilton Food
The main advantage of trading using opposite Aptitude Software and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptitude Software position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Aptitude Software vs. Cairo Communication SpA | Aptitude Software vs. Zoom Video Communications | Aptitude Software vs. MediaZest plc | Aptitude Software vs. Mobile Tornado Group |
| Hilton Food vs. Tungsten West PLC | Hilton Food vs. Argo Group Limited | Hilton Food vs. Hardide PLC | Hilton Food vs. Gfinity PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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