Correlation Between Hansa Investment and Bertrandt
Can any of the company-specific risk be diversified away by investing in both Hansa Investment and Bertrandt 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 Hansa Investment and Bertrandt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and Bertrandt AG, you can compare the effects of market volatilities on Hansa Investment and Bertrandt 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 Hansa Investment with a short position of Bertrandt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and Bertrandt.
Diversification Opportunities for Hansa Investment and Bertrandt
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hansa and Bertrandt is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and Bertrandt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bertrandt AG and Hansa Investment 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 Hansa Investment are associated (or correlated) with Bertrandt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bertrandt AG has no effect on the direction of Hansa Investment i.e., Hansa Investment and Bertrandt go up and down completely randomly.
Pair Corralation between Hansa Investment and Bertrandt
Assuming the 90 days trading horizon Hansa Investment is expected to generate 0.64 times more return on investment than Bertrandt. However, Hansa Investment is 1.57 times less risky than Bertrandt. It trades about 0.08 of its potential returns per unit of risk. Bertrandt AG is currently generating about -0.17 per unit of risk. If you would invest 18,547 in Hansa Investment on September 14, 2024 and sell it today you would earn a total of 5,053 from holding Hansa Investment or generate 27.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hansa Investment vs. Bertrandt AG
Performance |
| Timeline |
| Hansa Investment |
| Bertrandt AG |
Hansa Investment and Bertrandt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and Bertrandt
The main advantage of trading using opposite Hansa Investment and Bertrandt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Investment position performs unexpectedly, Bertrandt 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 Bertrandt will offset losses from the drop in Bertrandt's long position.| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Legal General Group | Hansa Investment vs. TMT Investments PLC |
| Bertrandt vs. Blackrock World Mining | Bertrandt vs. Panther Metals PLC | Bertrandt vs. Made Tech Group | Bertrandt vs. TechnipFMC PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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