Correlation Between Cadeler As and Hexagon Purus
Can any of the company-specific risk be diversified away by investing in both Cadeler As and Hexagon Purus 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 Cadeler As and Hexagon Purus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler As and Hexagon Purus As, you can compare the effects of market volatilities on Cadeler As and Hexagon Purus 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 Cadeler As with a short position of Hexagon Purus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler As and Hexagon Purus.
Diversification Opportunities for Cadeler As and Hexagon Purus
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cadeler and Hexagon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler As and Hexagon Purus As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Purus As and Cadeler As 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 Cadeler As are associated (or correlated) with Hexagon Purus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Purus As has no effect on the direction of Cadeler As i.e., Cadeler As and Hexagon Purus go up and down completely randomly.
Pair Corralation between Cadeler As and Hexagon Purus
Assuming the 90 days trading horizon Cadeler As is expected to generate 0.38 times more return on investment than Hexagon Purus. However, Cadeler As is 2.65 times less risky than Hexagon Purus. It trades about -0.23 of its potential returns per unit of risk. Hexagon Purus As is currently generating about -0.21 per unit of risk. If you would invest 7,390 in Cadeler As on September 1, 2024 and sell it today you would lose (610.00) from holding Cadeler As or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadeler As vs. Hexagon Purus As
Performance |
| Timeline |
| Cadeler As |
| Hexagon Purus As |
Cadeler As and Hexagon Purus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadeler As and Hexagon Purus
The main advantage of trading using opposite Cadeler As and Hexagon Purus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler As position performs unexpectedly, Hexagon Purus 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 Hexagon Purus will offset losses from the drop in Hexagon Purus' long position.| Cadeler As vs. Havila Shipping ASA | Cadeler As vs. Shelf Drilling | Cadeler As vs. Solstad Offsho | Cadeler As vs. Eidesvik Offshore ASA |
| Hexagon Purus vs. Scana ASA | Hexagon Purus vs. Elkem ASA | Hexagon Purus vs. Integrated Wind Solutions | Hexagon Purus vs. Vow ASA |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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