Correlation Between Hanza AB and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both Hanza AB and JonDeTech Sensors 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 Hanza AB and JonDeTech Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanza AB and JonDeTech Sensors, you can compare the effects of market volatilities on Hanza AB and JonDeTech Sensors 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 Hanza AB with a short position of JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanza AB and JonDeTech Sensors.
Diversification Opportunities for Hanza AB and JonDeTech Sensors
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanza and JonDeTech is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanza AB and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors and Hanza AB 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 Hanza AB are associated (or correlated) with JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of Hanza AB i.e., Hanza AB and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between Hanza AB and JonDeTech Sensors
Assuming the 90 days trading horizon Hanza AB is expected to generate 0.85 times more return on investment than JonDeTech Sensors. However, Hanza AB is 1.18 times less risky than JonDeTech Sensors. It trades about 0.18 of its potential returns per unit of risk. JonDeTech Sensors is currently generating about -0.11 per unit of risk. If you would invest 5,950 in Hanza AB on August 27, 2024 and sell it today you would earn a total of 855.00 from holding Hanza AB or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanza AB vs. JonDeTech Sensors
Performance |
| Timeline |
| Hanza AB |
| JonDeTech Sensors |
Hanza AB and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanza AB and JonDeTech Sensors
The main advantage of trading using opposite Hanza AB and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanza AB position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.| Hanza AB vs. Hexatronic Group AB | Hanza AB vs. Instalco Intressenter AB | Hanza AB vs. NOTE AB | Hanza AB vs. Dometic Group AB |
| JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group AB | JonDeTech Sensors vs. IAR Systems Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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