Correlation Between HBM Healthcare and IVF Hartmann
Can any of the company-specific risk be diversified away by investing in both HBM Healthcare and IVF Hartmann 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 HBM Healthcare and IVF Hartmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HBM Healthcare Investments and IVF Hartmann Holding, you can compare the effects of market volatilities on HBM Healthcare and IVF Hartmann 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 HBM Healthcare with a short position of IVF Hartmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of HBM Healthcare and IVF Hartmann.
Diversification Opportunities for HBM Healthcare and IVF Hartmann
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between HBM and IVF is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HBM Healthcare Investments and IVF Hartmann Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IVF Hartmann Holding and HBM Healthcare 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 HBM Healthcare Investments are associated (or correlated) with IVF Hartmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IVF Hartmann Holding has no effect on the direction of HBM Healthcare i.e., HBM Healthcare and IVF Hartmann go up and down completely randomly.
Pair Corralation between HBM Healthcare and IVF Hartmann
Assuming the 90 days trading horizon HBM Healthcare Investments is expected to generate 1.57 times more return on investment than IVF Hartmann. However, HBM Healthcare is 1.57 times more volatile than IVF Hartmann Holding. It trades about 0.42 of its potential returns per unit of risk. IVF Hartmann Holding is currently generating about 0.01 per unit of risk. If you would invest 17,140 in HBM Healthcare Investments on November 3, 2024 and sell it today you would earn a total of 2,800 from holding HBM Healthcare Investments or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HBM Healthcare Investments vs. IVF Hartmann Holding
Performance |
| Timeline |
| HBM Healthcare Inves |
| IVF Hartmann Holding |
HBM Healthcare and IVF Hartmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HBM Healthcare and IVF Hartmann
The main advantage of trading using opposite HBM Healthcare and IVF Hartmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HBM Healthcare position performs unexpectedly, IVF Hartmann 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 IVF Hartmann will offset losses from the drop in IVF Hartmann's long position.| HBM Healthcare vs. BB Biotech AG | HBM Healthcare vs. Partners Group Holding | HBM Healthcare vs. Tecan Group AG | HBM Healthcare vs. VAT Group AG |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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