Correlation Between Hawaiian Holdings and Beiersdorf Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Hawaiian Holdings and Beiersdorf Aktiengesellscha 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 Hawaiian Holdings and Beiersdorf Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Holdings and Beiersdorf Aktiengesellschaft, you can compare the effects of market volatilities on Hawaiian Holdings and Beiersdorf Aktiengesellscha 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 Hawaiian Holdings with a short position of Beiersdorf Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Holdings and Beiersdorf Aktiengesellscha.
Diversification Opportunities for Hawaiian Holdings and Beiersdorf Aktiengesellscha
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hawaiian and Beiersdorf is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Holdings and Beiersdorf Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beiersdorf Aktiengesellscha and Hawaiian Holdings 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 Hawaiian Holdings are associated (or correlated) with Beiersdorf Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beiersdorf Aktiengesellscha has no effect on the direction of Hawaiian Holdings i.e., Hawaiian Holdings and Beiersdorf Aktiengesellscha go up and down completely randomly.
Pair Corralation between Hawaiian Holdings and Beiersdorf Aktiengesellscha
Allowing for the 90-day total investment horizon Hawaiian Holdings is expected to generate 1.8 times more return on investment than Beiersdorf Aktiengesellscha. However, Hawaiian Holdings is 1.8 times more volatile than Beiersdorf Aktiengesellschaft. It trades about 0.07 of its potential returns per unit of risk. Beiersdorf Aktiengesellschaft is currently generating about -0.06 per unit of risk. If you would invest 1,333 in Hawaiian Holdings on September 4, 2024 and sell it today you would earn a total of 467.00 from holding Hawaiian Holdings or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.3% |
| Values | Daily Returns |
Hawaiian Holdings vs. Beiersdorf Aktiengesellschaft
Performance |
| Timeline |
| Hawaiian Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Beiersdorf Aktiengesellscha |
Hawaiian Holdings and Beiersdorf Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Holdings and Beiersdorf Aktiengesellscha
The main advantage of trading using opposite Hawaiian Holdings and Beiersdorf Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Holdings position performs unexpectedly, Beiersdorf Aktiengesellscha 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 Beiersdorf Aktiengesellscha will offset losses from the drop in Beiersdorf Aktiengesellscha's long position.| Hawaiian Holdings vs. Southwest Airlines | Hawaiian Holdings vs. JetBlue Airways Corp | Hawaiian Holdings vs. United Airlines Holdings | Hawaiian Holdings vs. Delta Air Lines |
| Beiersdorf Aktiengesellscha vs. Henkel Ag A | Beiersdorf Aktiengesellscha vs. Essity AB | Beiersdorf Aktiengesellscha vs. Hengan International 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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