Correlation Between HAL Trust and Value8 NV
Can any of the company-specific risk be diversified away by investing in both HAL Trust and Value8 NV 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 HAL Trust and Value8 NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAL Trust and Value8 NV, you can compare the effects of market volatilities on HAL Trust and Value8 NV 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 HAL Trust with a short position of Value8 NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and Value8 NV.
Diversification Opportunities for HAL Trust and Value8 NV
Good diversification
The 3 months correlation between HAL and Value8 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and Value8 NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value8 NV and HAL Trust 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 HAL Trust are associated (or correlated) with Value8 NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value8 NV has no effect on the direction of HAL Trust i.e., HAL Trust and Value8 NV go up and down completely randomly.
Pair Corralation between HAL Trust and Value8 NV
Assuming the 90 days trading horizon HAL Trust is expected to generate 1.73 times less return on investment than Value8 NV. But when comparing it to its historical volatility, HAL Trust is 1.79 times less risky than Value8 NV. It trades about 0.03 of its potential returns per unit of risk. Value8 NV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Value8 NV on August 27, 2024 and sell it today you would earn a total of 33.00 from holding Value8 NV or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAL Trust vs. Value8 NV
Performance |
| Timeline |
| HAL Trust |
| Value8 NV |
HAL Trust and Value8 NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAL Trust and Value8 NV
The main advantage of trading using opposite HAL Trust and Value8 NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust position performs unexpectedly, Value8 NV 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 Value8 NV will offset losses from the drop in Value8 NV's long position.| HAL Trust vs. Pershing Square Holdings | HAL Trust vs. Universal Music Group | HAL Trust vs. BlackRock ESG Multi Asset | HAL Trust vs. Aalberts Industries NV |
| Value8 NV vs. NV Nederlandsche Apparatenfabriek | Value8 NV vs. HAL Trust | Value8 NV vs. Brunel International NV |
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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