Correlation Between AstraZeneca PLC and HAKI Safety
Can any of the company-specific risk be diversified away by investing in both AstraZeneca PLC and HAKI Safety 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 AstraZeneca PLC and HAKI Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstraZeneca PLC and HAKI Safety A, you can compare the effects of market volatilities on AstraZeneca PLC and HAKI Safety 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 AstraZeneca PLC with a short position of HAKI Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and HAKI Safety.
Diversification Opportunities for AstraZeneca PLC and HAKI Safety
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AstraZeneca and HAKI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC and HAKI Safety A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKI Safety A and AstraZeneca PLC 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 AstraZeneca PLC are associated (or correlated) with HAKI Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKI Safety A has no effect on the direction of AstraZeneca PLC i.e., AstraZeneca PLC and HAKI Safety go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and HAKI Safety
Assuming the 90 days trading horizon AstraZeneca PLC is expected to under-perform the HAKI Safety. But the stock apears to be less risky and, when comparing its historical volatility, AstraZeneca PLC is 2.39 times less risky than HAKI Safety. The stock trades about -0.07 of its potential returns per unit of risk. The HAKI Safety A is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,980 in HAKI Safety A on September 4, 2024 and sell it today you would lose (100.00) from holding HAKI Safety A or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AstraZeneca PLC vs. HAKI Safety A
Performance |
| Timeline |
| AstraZeneca PLC |
| HAKI Safety A |
AstraZeneca PLC and HAKI Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and HAKI Safety
The main advantage of trading using opposite AstraZeneca PLC and HAKI Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC position performs unexpectedly, HAKI Safety 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 HAKI Safety will offset losses from the drop in HAKI Safety's long position.| AstraZeneca PLC vs. BioInvent International AB | AstraZeneca PLC vs. Hansa Biopharma AB | AstraZeneca PLC vs. ExpreS2ion Biotech Holding | AstraZeneca PLC vs. Saniona AB |
| HAKI Safety vs. Scandinavian ChemoTech AB | HAKI Safety vs. Beowulf Mining PLC | HAKI Safety vs. SaltX Technology Holding | HAKI Safety vs. Raketech Group Holding |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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