Correlation Between Hosken Consolidated and Ascendis Health
Can any of the company-specific risk be diversified away by investing in both Hosken Consolidated and Ascendis Health 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 Hosken Consolidated and Ascendis Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hosken Consolidated Investments and Ascendis Health, you can compare the effects of market volatilities on Hosken Consolidated and Ascendis Health 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 Hosken Consolidated with a short position of Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hosken Consolidated and Ascendis Health.
Diversification Opportunities for Hosken Consolidated and Ascendis Health
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hosken and Ascendis is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hosken Consolidated Investment and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health and Hosken Consolidated 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 Hosken Consolidated Investments are associated (or correlated) with Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Hosken Consolidated i.e., Hosken Consolidated and Ascendis Health go up and down completely randomly.
Pair Corralation between Hosken Consolidated and Ascendis Health
Assuming the 90 days trading horizon Hosken Consolidated Investments is expected to under-perform the Ascendis Health. But the stock apears to be less risky and, when comparing its historical volatility, Hosken Consolidated Investments is 1.57 times less risky than Ascendis Health. The stock trades about -0.1 of its potential returns per unit of risk. The Ascendis Health is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,400 in Ascendis Health on August 30, 2024 and sell it today you would earn a total of 500.00 from holding Ascendis Health or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hosken Consolidated Investment vs. Ascendis Health
Performance |
| Timeline |
| Hosken Consolidated |
| Ascendis Health |
Hosken Consolidated and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hosken Consolidated and Ascendis Health
The main advantage of trading using opposite Hosken Consolidated and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hosken Consolidated position performs unexpectedly, Ascendis Health 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 Ascendis Health will offset losses from the drop in Ascendis Health's long position.| Hosken Consolidated vs. Reinet Investments SCA | Hosken Consolidated vs. Afine Investments | Hosken Consolidated vs. Harmony Gold Mining | Hosken Consolidated vs. City Lodge Hotels |
| Ascendis Health vs. Astoria Investments | Ascendis Health vs. Harmony Gold Mining | Ascendis Health vs. RCL Foods | Ascendis Health vs. ABSA Bank Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |