Correlation Between Chiba Bank and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both Chiba Bank and HYBRIGENICS 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 Chiba Bank and HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank and HYBRIGENICS A , you can compare the effects of market volatilities on Chiba Bank and HYBRIGENICS 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 Chiba Bank with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and HYBRIGENICS.
Diversification Opportunities for Chiba Bank and HYBRIGENICS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chiba and HYBRIGENICS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and Chiba Bank 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 Chiba Bank are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Chiba Bank i.e., Chiba Bank and HYBRIGENICS go up and down completely randomly.
Pair Corralation between Chiba Bank and HYBRIGENICS
Assuming the 90 days horizon Chiba Bank is expected to generate 0.36 times more return on investment than HYBRIGENICS. However, Chiba Bank is 2.76 times less risky than HYBRIGENICS. It trades about 0.05 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about 0.0 per unit of risk. If you would invest 431.00 in Chiba Bank on September 12, 2024 and sell it today you would earn a total of 364.00 from holding Chiba Bank or generate 84.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiba Bank vs. HYBRIGENICS A
Performance |
| Timeline |
| Chiba Bank |
| HYBRIGENICS A |
Chiba Bank and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and HYBRIGENICS
The main advantage of trading using opposite Chiba Bank and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.The idea behind Chiba Bank and HYBRIGENICS A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HYBRIGENICS vs. Chiba Bank | HYBRIGENICS vs. Chesapeake Utilities | HYBRIGENICS vs. VIRG NATL BANKSH | HYBRIGENICS vs. COMINTL BANK ADR1 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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