Correlation Between Greater Than and Hexagon AB
Can any of the company-specific risk be diversified away by investing in both Greater Than and Hexagon 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 Greater Than and Hexagon AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Than AB and Hexagon AB, you can compare the effects of market volatilities on Greater Than and Hexagon 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 Greater Than with a short position of Hexagon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Than and Hexagon AB.
Diversification Opportunities for Greater Than and Hexagon AB
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greater and Hexagon is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Greater Than AB and Hexagon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon AB and Greater Than 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 Greater Than AB are associated (or correlated) with Hexagon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon AB has no effect on the direction of Greater Than i.e., Greater Than and Hexagon AB go up and down completely randomly.
Pair Corralation between Greater Than and Hexagon AB
Assuming the 90 days trading horizon Greater Than AB is expected to under-perform the Hexagon AB. In addition to that, Greater Than is 2.28 times more volatile than Hexagon AB. It trades about -0.39 of its total potential returns per unit of risk. Hexagon AB is currently generating about -0.18 per unit of volatility. If you would invest 10,150 in Hexagon AB on August 25, 2024 and sell it today you would lose (964.00) from holding Hexagon AB or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Than AB vs. Hexagon AB
Performance |
| Timeline |
| Greater Than AB |
| Hexagon AB |
Greater Than and Hexagon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Than and Hexagon AB
The main advantage of trading using opposite Greater Than and Hexagon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Than position performs unexpectedly, Hexagon 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 Hexagon AB will offset losses from the drop in Hexagon AB's long position.| Greater Than vs. BIMobject AB | Greater Than vs. IAR Systems Group | Greater Than vs. FormPipe Software AB | Greater Than vs. Generic Sweden publ |
| Hexagon AB vs. Integrum AB Series | Hexagon AB vs. Concejo AB | Hexagon AB vs. Diadrom Holding AB | Hexagon AB vs. Greater Than AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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