Correlation Between Advanced Blockchain and HomeToGo
Can any of the company-specific risk be diversified away by investing in both Advanced Blockchain and HomeToGo 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 Advanced Blockchain and HomeToGo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Blockchain AG and HomeToGo SE, you can compare the effects of market volatilities on Advanced Blockchain and HomeToGo 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 Advanced Blockchain with a short position of HomeToGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Blockchain and HomeToGo.
Diversification Opportunities for Advanced Blockchain and HomeToGo
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advanced and HomeToGo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Blockchain AG and HomeToGo SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeToGo SE and Advanced Blockchain 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 Advanced Blockchain AG are associated (or correlated) with HomeToGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeToGo SE has no effect on the direction of Advanced Blockchain i.e., Advanced Blockchain and HomeToGo go up and down completely randomly.
Pair Corralation between Advanced Blockchain and HomeToGo
Assuming the 90 days trading horizon Advanced Blockchain AG is expected to under-perform the HomeToGo. In addition to that, Advanced Blockchain is 1.54 times more volatile than HomeToGo SE. It trades about -0.45 of its total potential returns per unit of risk. HomeToGo SE is currently generating about -0.17 per unit of volatility. If you would invest 201.00 in HomeToGo SE on December 1, 2024 and sell it today you would lose (20.00) from holding HomeToGo SE or give up 9.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advanced Blockchain AG vs. HomeToGo SE
Performance |
| Timeline |
| Advanced Blockchain |
| HomeToGo SE |
Advanced Blockchain and HomeToGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Blockchain and HomeToGo
The main advantage of trading using opposite Advanced Blockchain and HomeToGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Blockchain position performs unexpectedly, HomeToGo 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 HomeToGo will offset losses from the drop in HomeToGo's long position.| Advanced Blockchain vs. Qurate Retail Series | Advanced Blockchain vs. ScanSource | Advanced Blockchain vs. OPKO HEALTH | Advanced Blockchain vs. CanSino Biologics |
| HomeToGo vs. GALENA MINING LTD | HomeToGo vs. COLUMBIA SPORTSWEAR | HomeToGo vs. GUILD ESPORTS PLC | HomeToGo vs. PLAYWAY SA ZY 10 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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