Correlation Between HAGA SA and Pettenati
Can any of the company-specific risk be diversified away by investing in both HAGA SA and Pettenati 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 Pettenati 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 Pettenati SA Industria, you can compare the effects of market volatilities on HAGA SA and Pettenati 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 Pettenati. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and Pettenati.
Diversification Opportunities for HAGA SA and Pettenati
Very good diversification
The 3 months correlation between HAGA and Pettenati is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Pettenati SA Industria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pettenati SA Industria 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 Pettenati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pettenati SA Industria has no effect on the direction of HAGA SA i.e., HAGA SA and Pettenati go up and down completely randomly.
Pair Corralation between HAGA SA and Pettenati
Assuming the 90 days trading horizon HAGA SA is expected to generate 1.1 times less return on investment than Pettenati. But when comparing it to its historical volatility, HAGA SA Indstria is 1.6 times less risky than Pettenati. It trades about 0.12 of its potential returns per unit of risk. Pettenati SA Industria is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 594.00 in Pettenati SA Industria on August 23, 2024 and sell it today you would earn a total of 66.00 from holding Pettenati SA Industria or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAGA SA Indstria vs. Pettenati SA Industria
Performance |
| Timeline |
| HAGA SA Indstria |
| Pettenati SA Industria |
HAGA SA and Pettenati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and Pettenati
The main advantage of trading using opposite HAGA SA and Pettenati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA position performs unexpectedly, Pettenati 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 Pettenati will offset losses from the drop in Pettenati's long position.| HAGA SA vs. METISA Metalrgica Timboense | HAGA SA vs. Wetzel SA | HAGA SA vs. Recrusul SA | HAGA SA vs. Randon SA Implementos |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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