Correlation Between Hudson Technologies and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both Hudson Technologies and Contagious Gaming 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 Hudson Technologies and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and Contagious Gaming, you can compare the effects of market volatilities on Hudson Technologies and Contagious Gaming 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 Hudson Technologies with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and Contagious Gaming.
Diversification Opportunities for Hudson Technologies and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hudson and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and Contagious Gaming go up and down completely randomly.
Pair Corralation between Hudson Technologies and Contagious Gaming
Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the Contagious Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Technologies is 2.38 times less risky than Contagious Gaming. The stock trades about -0.02 of its potential returns per unit of risk. The Contagious Gaming is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 0.87 in Contagious Gaming on September 13, 2024 and sell it today you would lose (0.65) from holding Contagious Gaming or give up 74.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hudson Technologies vs. Contagious Gaming
Performance |
| Timeline |
| Hudson Technologies |
| Contagious Gaming |
Hudson Technologies and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Technologies and Contagious Gaming
The main advantage of trading using opposite Hudson Technologies and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
| Contagious Gaming vs. Sonos Inc | Contagious Gaming vs. Celestica | Contagious Gaming vs. Hudson Technologies | Contagious Gaming vs. Luxfer Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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