Correlation Between HAMMONIA Schiffsholding and Pampa Energa
Can any of the company-specific risk be diversified away by investing in both HAMMONIA Schiffsholding and Pampa Energa 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 HAMMONIA Schiffsholding and Pampa Energa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAMMONIA Schiffsholding AG and Pampa Energa SA, you can compare the effects of market volatilities on HAMMONIA Schiffsholding and Pampa Energa 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 HAMMONIA Schiffsholding with a short position of Pampa Energa. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAMMONIA Schiffsholding and Pampa Energa.
Diversification Opportunities for HAMMONIA Schiffsholding and Pampa Energa
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HAMMONIA and Pampa is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding HAMMONIA Schiffsholding AG and Pampa Energa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energa SA and HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding AG are associated (or correlated) with Pampa Energa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energa SA has no effect on the direction of HAMMONIA Schiffsholding i.e., HAMMONIA Schiffsholding and Pampa Energa go up and down completely randomly.
Pair Corralation between HAMMONIA Schiffsholding and Pampa Energa
Assuming the 90 days trading horizon HAMMONIA Schiffsholding is expected to generate 9.7 times less return on investment than Pampa Energa. But when comparing it to its historical volatility, HAMMONIA Schiffsholding AG is 1.45 times less risky than Pampa Energa. It trades about 0.02 of its potential returns per unit of risk. Pampa Energa SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,600 in Pampa Energa SA on August 29, 2024 and sell it today you would earn a total of 3,350 from holding Pampa Energa SA or generate 72.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAMMONIA Schiffsholding AG vs. Pampa Energa SA
Performance |
| Timeline |
| HAMMONIA Schiffsholding |
| Pampa Energa SA |
HAMMONIA Schiffsholding and Pampa Energa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAMMONIA Schiffsholding and Pampa Energa
The main advantage of trading using opposite HAMMONIA Schiffsholding and Pampa Energa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAMMONIA Schiffsholding position performs unexpectedly, Pampa Energa 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 Pampa Energa will offset losses from the drop in Pampa Energa's long position.| HAMMONIA Schiffsholding vs. COSCO SHIPPING Energy | HAMMONIA Schiffsholding vs. Superior Plus Corp | HAMMONIA Schiffsholding vs. NMI Holdings | HAMMONIA Schiffsholding vs. SIVERS SEMICONDUCTORS AB |
| Pampa Energa vs. Computer And Technologies | Pampa Energa vs. DXC Technology Co | Pampa Energa vs. KOOL2PLAY SA ZY | Pampa Energa vs. JD SPORTS FASH |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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