Correlation Between HH International and DFDS AS
Can any of the company-specific risk be diversified away by investing in both HH International and DFDS AS 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 HH International and DFDS AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HH International AS and DFDS AS, you can compare the effects of market volatilities on HH International and DFDS AS 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 HH International with a short position of DFDS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HH International and DFDS AS.
Diversification Opportunities for HH International and DFDS AS
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HH International and DFDS is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding HH International AS and DFDS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFDS AS and HH International 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 HH International AS are associated (or correlated) with DFDS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFDS AS has no effect on the direction of HH International i.e., HH International and DFDS AS go up and down completely randomly.
Pair Corralation between HH International and DFDS AS
Assuming the 90 days horizon HH International AS is expected to generate 0.53 times more return on investment than DFDS AS. However, HH International AS is 1.89 times less risky than DFDS AS. It trades about -0.22 of its potential returns per unit of risk. DFDS AS is currently generating about -0.16 per unit of risk. If you would invest 8,620 in HH International AS on August 25, 2024 and sell it today you would lose (620.00) from holding HH International AS or give up 7.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HH International AS vs. DFDS AS
Performance |
| Timeline |
| HH International |
| DFDS AS |
HH International and DFDS AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HH International and DFDS AS
The main advantage of trading using opposite HH International and DFDS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HH International position performs unexpectedly, DFDS AS 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 DFDS AS will offset losses from the drop in DFDS AS's long position.| HH International vs. Flgger group AS | HH International vs. SKAKO AS | HH International vs. Solar AS | HH International vs. Brd Klee AS |
| DFDS AS vs. North Media AS | DFDS AS vs. HH International AS | DFDS AS vs. Per Aarsleff Holding | DFDS AS vs. First Farms AS |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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