Correlation Between Doxa AB and Hanza AB
Can any of the company-specific risk be diversified away by investing in both Doxa AB and Hanza AB 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 Doxa AB and Hanza AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doxa AB and Hanza AB, you can compare the effects of market volatilities on Doxa AB and Hanza AB 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 Doxa AB with a short position of Hanza AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doxa AB and Hanza AB.
Diversification Opportunities for Doxa AB and Hanza AB
Very good diversification
The 3 months correlation between Doxa and Hanza is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Doxa AB and Hanza AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanza AB and Doxa AB 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 Doxa AB are associated (or correlated) with Hanza AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanza AB has no effect on the direction of Doxa AB i.e., Doxa AB and Hanza AB go up and down completely randomly.
Pair Corralation between Doxa AB and Hanza AB
Assuming the 90 days trading horizon Doxa AB is expected to under-perform the Hanza AB. In addition to that, Doxa AB is 1.41 times more volatile than Hanza AB. It trades about -0.11 of its total potential returns per unit of risk. Hanza AB is currently generating about -0.03 per unit of volatility. If you would invest 8,763 in Hanza AB on August 29, 2024 and sell it today you would lose (2,013) from holding Hanza AB or give up 22.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doxa AB vs. Hanza AB
Performance |
| Timeline |
| Doxa AB |
| Hanza AB |
Doxa AB and Hanza AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doxa AB and Hanza AB
The main advantage of trading using opposite Doxa AB and Hanza AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doxa AB position performs unexpectedly, Hanza AB 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 Hanza AB will offset losses from the drop in Hanza AB's long position.| Doxa AB vs. Mantex AB | Doxa AB vs. Genovis AB | Doxa AB vs. Vestum AB | Doxa AB vs. Karolinska Development AB |
| Hanza AB vs. Divio Technologies AB | Hanza AB vs. XMReality AB | Hanza AB vs. KABE Group AB | Hanza AB vs. IAR Systems Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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