Correlation Between Hexagon AB and Cell Impact
Can any of the company-specific risk be diversified away by investing in both Hexagon AB and Cell Impact 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 Hexagon AB and Cell Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexagon AB and Cell Impact AB, you can compare the effects of market volatilities on Hexagon AB and Cell Impact 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 Hexagon AB with a short position of Cell Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon AB and Cell Impact.
Diversification Opportunities for Hexagon AB and Cell Impact
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hexagon and Cell is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon AB and Cell Impact AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Impact AB and Hexagon AB 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 Hexagon AB are associated (or correlated) with Cell Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Impact AB has no effect on the direction of Hexagon AB i.e., Hexagon AB and Cell Impact go up and down completely randomly.
Pair Corralation between Hexagon AB and Cell Impact
Assuming the 90 days trading horizon Hexagon AB is expected to generate 0.47 times more return on investment than Cell Impact. However, Hexagon AB is 2.12 times less risky than Cell Impact. It trades about -0.24 of its potential returns per unit of risk. Cell Impact AB is currently generating about -0.19 per unit of risk. If you would invest 10,165 in Hexagon AB on September 2, 2024 and sell it today you would lose (871.00) from holding Hexagon AB or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexagon AB vs. Cell Impact AB
Performance |
| Timeline |
| Hexagon AB |
| Cell Impact AB |
Hexagon AB and Cell Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon AB and Cell Impact
The main advantage of trading using opposite Hexagon AB and Cell Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon AB position performs unexpectedly, Cell Impact 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 Cell Impact will offset losses from the drop in Cell Impact's long position.| Hexagon AB vs. Impact Coatings publ | Hexagon AB vs. Catella AB | Hexagon AB vs. Lidds AB | Hexagon AB vs. CellaVision AB |
| Cell Impact vs. Impact Coatings publ | Cell Impact vs. Powercell Sweden | Cell Impact vs. Oncopeptides AB | Cell Impact vs. SaltX Technology Holding |
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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