Correlation Between Hudson Technologies and DEUTSCHE

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Can any of the company-specific risk be diversified away by investing in both Hudson Technologies and DEUTSCHE 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 DEUTSCHE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and DEUTSCHE BANK AG, you can compare the effects of market volatilities on Hudson Technologies and DEUTSCHE 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 DEUTSCHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and DEUTSCHE.

Diversification Opportunities for Hudson Technologies and DEUTSCHE

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Hudson and DEUTSCHE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and DEUTSCHE BANK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BANK AG 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 DEUTSCHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE BANK AG has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and DEUTSCHE go up and down completely randomly.

Pair Corralation between Hudson Technologies and DEUTSCHE

Given the investment horizon of 90 days Hudson Technologies is expected to generate 12.79 times more return on investment than DEUTSCHE. However, Hudson Technologies is 12.79 times more volatile than DEUTSCHE BANK AG. It trades about 0.09 of its potential returns per unit of risk. DEUTSCHE BANK AG is currently generating about 0.1 per unit of risk. If you would invest  562.00  in Hudson Technologies on October 14, 2024 and sell it today you would earn a total of  16.00  from holding Hudson Technologies or generate 2.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy78.95%
ValuesDaily Returns

Hudson Technologies  vs.  DEUTSCHE BANK AG

 Performance 
       Timeline  
Hudson Technologies 

Risk-Adjusted Performance

0 of 100

 
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Over the last 90 days Hudson Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
DEUTSCHE BANK AG 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in DEUTSCHE BANK AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, DEUTSCHE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hudson Technologies and DEUTSCHE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hudson Technologies and DEUTSCHE

The main advantage of trading using opposite Hudson Technologies and DEUTSCHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies position performs unexpectedly, DEUTSCHE 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 DEUTSCHE will offset losses from the drop in DEUTSCHE's long position.
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The idea behind Hudson Technologies and DEUTSCHE BANK AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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