Correlation Between Hosken Consolidated and Compagnie Financire
Can any of the company-specific risk be diversified away by investing in both Hosken Consolidated and Compagnie Financire 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 Compagnie Financire 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 Compagnie Financire Richemont, you can compare the effects of market volatilities on Hosken Consolidated and Compagnie Financire 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 Compagnie Financire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hosken Consolidated and Compagnie Financire.
Diversification Opportunities for Hosken Consolidated and Compagnie Financire
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hosken and Compagnie is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hosken Consolidated Investment and Compagnie Financire Richemont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Financire 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 Compagnie Financire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Financire has no effect on the direction of Hosken Consolidated i.e., Hosken Consolidated and Compagnie Financire go up and down completely randomly.
Pair Corralation between Hosken Consolidated and Compagnie Financire
Assuming the 90 days trading horizon Hosken Consolidated Investments is expected to generate 0.86 times more return on investment than Compagnie Financire. However, Hosken Consolidated Investments is 1.16 times less risky than Compagnie Financire. It trades about 0.07 of its potential returns per unit of risk. Compagnie Financire Richemont is currently generating about -0.06 per unit of risk. If you would invest 1,739,900 in Hosken Consolidated Investments on August 25, 2024 and sell it today you would earn a total of 217,900 from holding Hosken Consolidated Investments or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hosken Consolidated Investment vs. Compagnie Financire Richemont
Performance |
| Timeline |
| Hosken Consolidated |
| Compagnie Financire |
Hosken Consolidated and Compagnie Financire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hosken Consolidated and Compagnie Financire
The main advantage of trading using opposite Hosken Consolidated and Compagnie Financire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hosken Consolidated position performs unexpectedly, Compagnie Financire 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 Compagnie Financire will offset losses from the drop in Compagnie Financire's long position.| Hosken Consolidated vs. Kap Industrial Holdings | Hosken Consolidated vs. Deneb Investments | Hosken Consolidated vs. Brikor |
| Compagnie Financire vs. HomeChoice Investments | Compagnie Financire vs. Standard Bank Group | Compagnie Financire vs. Hosken Consolidated Investments | Compagnie Financire vs. Astoria Investments |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |