Correlation Between Haemonetics and Douglas Emmett
Can any of the company-specific risk be diversified away by investing in both Haemonetics and Douglas Emmett 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 Haemonetics and Douglas Emmett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and Douglas Emmett, you can compare the effects of market volatilities on Haemonetics and Douglas Emmett 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 Haemonetics with a short position of Douglas Emmett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and Douglas Emmett.
Diversification Opportunities for Haemonetics and Douglas Emmett
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haemonetics and Douglas is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Douglas Emmett in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Douglas Emmett and Haemonetics 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 Haemonetics are associated (or correlated) with Douglas Emmett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Douglas Emmett has no effect on the direction of Haemonetics i.e., Haemonetics and Douglas Emmett go up and down completely randomly.
Pair Corralation between Haemonetics and Douglas Emmett
Considering the 90-day investment horizon Haemonetics is expected to generate 7.81 times less return on investment than Douglas Emmett. But when comparing it to its historical volatility, Haemonetics is 1.41 times less risky than Douglas Emmett. It trades about 0.01 of its potential returns per unit of risk. Douglas Emmett is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 972.00 in Douglas Emmett on October 13, 2024 and sell it today you would earn a total of 644.00 from holding Douglas Emmett or generate 66.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. Douglas Emmett
Performance |
| Timeline |
| Haemonetics |
| Douglas Emmett |
Haemonetics and Douglas Emmett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and Douglas Emmett
The main advantage of trading using opposite Haemonetics and Douglas Emmett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics position performs unexpectedly, Douglas Emmett 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 Douglas Emmett will offset losses from the drop in Douglas Emmett's long position.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| Douglas Emmett vs. Brandywine Realty Trust | Douglas Emmett vs. Kilroy Realty Corp | Douglas Emmett vs. Piedmont Office Realty | Douglas Emmett vs. City Office |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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