Correlation Between Global Health and Hansen Technologies
Can any of the company-specific risk be diversified away by investing in both Global Health and Hansen Technologies 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 Global Health and Hansen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Health and Hansen Technologies, you can compare the effects of market volatilities on Global Health and Hansen Technologies 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 Global Health with a short position of Hansen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Hansen Technologies.
Diversification Opportunities for Global Health and Hansen Technologies
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Hansen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Global Health and Hansen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansen Technologies and Global Health 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 Global Health are associated (or correlated) with Hansen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansen Technologies has no effect on the direction of Global Health i.e., Global Health and Hansen Technologies go up and down completely randomly.
Pair Corralation between Global Health and Hansen Technologies
If you would invest 14.00 in Global Health on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Global Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health vs. Hansen Technologies
Performance |
| Timeline |
| Global Health |
| Hansen Technologies |
Global Health and Hansen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Hansen Technologies
The main advantage of trading using opposite Global Health and Hansen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Hansen Technologies 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 Hansen Technologies will offset losses from the drop in Hansen Technologies' long position.| Global Health vs. ACDC Metals | Global Health vs. Lendlease Group | Global Health vs. Black Rock Mining | Global Health vs. Perseus Mining |
| Hansen Technologies vs. Charter Hall Education | Hansen Technologies vs. Carnegie Clean Energy | Hansen Technologies vs. Ramsay Health Care | Hansen Technologies vs. Global Health |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |