Correlation Between Glunz Jensen and Hydract AS
Can any of the company-specific risk be diversified away by investing in both Glunz Jensen and Hydract AS 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 Glunz Jensen and Hydract AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glunz Jensen and Hydract AS, you can compare the effects of market volatilities on Glunz Jensen and Hydract AS 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 Glunz Jensen with a short position of Hydract AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glunz Jensen and Hydract AS.
Diversification Opportunities for Glunz Jensen and Hydract AS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glunz and Hydract is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Glunz Jensen and Hydract AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydract AS and Glunz Jensen 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 Glunz Jensen are associated (or correlated) with Hydract AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydract AS has no effect on the direction of Glunz Jensen i.e., Glunz Jensen and Hydract AS go up and down completely randomly.
Pair Corralation between Glunz Jensen and Hydract AS
Assuming the 90 days horizon Glunz Jensen is expected to generate 33.85 times less return on investment than Hydract AS. But when comparing it to its historical volatility, Glunz Jensen is 3.65 times less risky than Hydract AS. It trades about 0.03 of its potential returns per unit of risk. Hydract AS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Hydract AS on October 21, 2024 and sell it today you would earn a total of 20.00 from holding Hydract AS or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glunz Jensen vs. Hydract AS
Performance |
| Timeline |
| Glunz Jensen |
| Hydract AS |
Glunz Jensen and Hydract AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glunz Jensen and Hydract AS
The main advantage of trading using opposite Glunz Jensen and Hydract AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glunz Jensen position performs unexpectedly, Hydract AS 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 Hydract AS will offset losses from the drop in Hydract AS's long position.| Glunz Jensen vs. First Farms AS | Glunz Jensen vs. SKAKO AS | Glunz Jensen vs. Rovsing AS | Glunz Jensen vs. Roblon AS |
| Hydract AS vs. RIAS AS | Hydract AS vs. Investeringsselskabet Luxor AS | Hydract AS vs. Glunz Jensen | Hydract AS vs. SKAKO AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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