Correlation Between Heliospectra Publ and Hedera Group
Can any of the company-specific risk be diversified away by investing in both Heliospectra Publ and Hedera Group 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 Heliospectra Publ and Hedera Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heliospectra publ AB and Hedera Group publ, you can compare the effects of market volatilities on Heliospectra Publ and Hedera Group 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 Heliospectra Publ with a short position of Hedera Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heliospectra Publ and Hedera Group.
Diversification Opportunities for Heliospectra Publ and Hedera Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heliospectra and Hedera is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Heliospectra publ AB and Hedera Group publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Group publ and Heliospectra Publ 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 Heliospectra publ AB are associated (or correlated) with Hedera Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Group publ has no effect on the direction of Heliospectra Publ i.e., Heliospectra Publ and Hedera Group go up and down completely randomly.
Pair Corralation between Heliospectra Publ and Hedera Group
Assuming the 90 days trading horizon Heliospectra publ AB is expected to generate 2.4 times more return on investment than Hedera Group. However, Heliospectra Publ is 2.4 times more volatile than Hedera Group publ. It trades about 0.03 of its potential returns per unit of risk. Hedera Group publ is currently generating about -0.13 per unit of risk. If you would invest 52.00 in Heliospectra publ AB on September 3, 2024 and sell it today you would lose (7.00) from holding Heliospectra publ AB or give up 13.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Heliospectra publ AB vs. Hedera Group publ
Performance |
| Timeline |
| Heliospectra publ |
| Hedera Group publ |
Heliospectra Publ and Hedera Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heliospectra Publ and Hedera Group
The main advantage of trading using opposite Heliospectra Publ and Hedera Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heliospectra Publ position performs unexpectedly, Hedera Group 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 Hedera Group will offset losses from the drop in Hedera Group's long position.| Heliospectra Publ vs. Impact Coatings publ | Heliospectra Publ vs. Kontigo Care AB | Heliospectra Publ vs. Klaria Pharma Holding | Heliospectra Publ vs. Gaming Corps AB |
| Hedera Group vs. Clean Motion AB | Hedera Group vs. Heliospectra publ AB | Hedera Group vs. Gaming Corps AB | Hedera Group vs. Doxa AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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