Correlation Between Hagar Hf and Hampidjan
Can any of the company-specific risk be diversified away by investing in both Hagar Hf and Hampidjan 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 Hagar Hf and Hampidjan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hagar hf and Hampidjan hf, you can compare the effects of market volatilities on Hagar Hf and Hampidjan 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 Hagar Hf with a short position of Hampidjan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hagar Hf and Hampidjan.
Diversification Opportunities for Hagar Hf and Hampidjan
Good diversification
The 3 months correlation between Hagar and Hampidjan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hagar hf and Hampidjan hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hampidjan hf and Hagar Hf 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 Hagar hf are associated (or correlated) with Hampidjan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hampidjan hf has no effect on the direction of Hagar Hf i.e., Hagar Hf and Hampidjan go up and down completely randomly.
Pair Corralation between Hagar Hf and Hampidjan
Assuming the 90 days trading horizon Hagar hf is expected to generate 0.64 times more return on investment than Hampidjan. However, Hagar hf is 1.57 times less risky than Hampidjan. It trades about 0.07 of its potential returns per unit of risk. Hampidjan hf is currently generating about -0.04 per unit of risk. If you would invest 9,400 in Hagar hf on August 25, 2024 and sell it today you would earn a total of 150.00 from holding Hagar hf or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hagar hf vs. Hampidjan hf
Performance |
| Timeline |
| Hagar hf |
| Hampidjan hf |
Hagar Hf and Hampidjan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hagar Hf and Hampidjan
The main advantage of trading using opposite Hagar Hf and Hampidjan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hagar Hf position performs unexpectedly, Hampidjan 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 Hampidjan will offset losses from the drop in Hampidjan's long position.| Hagar Hf vs. Icelandair Group hf | Hagar Hf vs. Arion banki hf | Hagar Hf vs. Festi hf | Hagar Hf vs. Marel hf |
| Hampidjan vs. Arion banki hf | Hampidjan vs. Flying Nickel Mining | Hampidjan vs. Marel hf | Hampidjan vs. Kvika banki hf |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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