Correlation Between HAGA SA and Hrcules SA
Can any of the company-specific risk be diversified away by investing in both HAGA SA and Hrcules SA 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 HAGA SA and Hrcules SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAGA SA Indstria and Hrcules SA , you can compare the effects of market volatilities on HAGA SA and Hrcules SA 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 HAGA SA with a short position of Hrcules SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and Hrcules SA.
Diversification Opportunities for HAGA SA and Hrcules SA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HAGA and Hrcules is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Hrcules SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hrcules SA and HAGA SA 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 HAGA SA Indstria are associated (or correlated) with Hrcules SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hrcules SA has no effect on the direction of HAGA SA i.e., HAGA SA and Hrcules SA go up and down completely randomly.
Pair Corralation between HAGA SA and Hrcules SA
Assuming the 90 days trading horizon HAGA SA is expected to generate 1.33 times less return on investment than Hrcules SA. But when comparing it to its historical volatility, HAGA SA Indstria is 4.14 times less risky than Hrcules SA. It trades about 0.08 of its potential returns per unit of risk. Hrcules SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 697.00 in Hrcules SA on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Hrcules SA or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAGA SA Indstria vs. Hrcules SA
Performance |
| Timeline |
| HAGA SA Indstria |
| Hrcules SA |
HAGA SA and Hrcules SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and Hrcules SA
The main advantage of trading using opposite HAGA SA and Hrcules SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA position performs unexpectedly, Hrcules SA 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 Hrcules SA will offset losses from the drop in Hrcules SA's long position.| HAGA SA vs. Fras le SA | HAGA SA vs. Indstrias Romi SA | HAGA SA vs. Clave Indices De | HAGA SA vs. BTG Pactual Logstica |
| Hrcules SA vs. Lupatech SA | Hrcules SA vs. Rossi Residencial SA | Hrcules SA vs. Fras le SA | Hrcules SA vs. Clave Indices De |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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