Correlation Between Cboe UK and Hansa Trust
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By analyzing existing cross correlation between Cboe UK Consumer and Hansa Trust, you can compare the effects of market volatilities on Cboe UK and Hansa Trust 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 Cboe UK with a short position of Hansa Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Hansa Trust.
Diversification Opportunities for Cboe UK and Hansa Trust
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cboe and Hansa is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Hansa Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Trust and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Hansa Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Trust has no effect on the direction of Cboe UK i.e., Cboe UK and Hansa Trust go up and down completely randomly.
Pair Corralation between Cboe UK and Hansa Trust
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.68 times more return on investment than Hansa Trust. However, Cboe UK Consumer is 1.47 times less risky than Hansa Trust. It trades about 0.11 of its potential returns per unit of risk. Hansa Trust is currently generating about 0.07 per unit of risk. If you would invest 2,372,546 in Cboe UK Consumer on September 12, 2024 and sell it today you would earn a total of 907,372 from holding Cboe UK Consumer or generate 38.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.11% |
| Values | Daily Returns |
Cboe UK Consumer vs. Hansa Trust
Performance |
| Timeline |
Cboe UK and Hansa Trust Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Hansa Trust
Pair trading matchups for Hansa Trust
Pair Trading with Cboe UK and Hansa Trust
The main advantage of trading using opposite Cboe UK and Hansa Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Hansa Trust 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 Hansa Trust will offset losses from the drop in Hansa Trust's long position.| Cboe UK vs. Central Asia Metals | Cboe UK vs. Gaztransport et Technigaz | Cboe UK vs. Park Hotels Resorts | Cboe UK vs. Addtech |
| Hansa Trust vs. Samsung Electronics Co | Hansa Trust vs. Samsung Electronics Co | Hansa Trust vs. Hyundai Motor | Hansa Trust vs. Toyota Motor Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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