Correlation Between HAMMONIA Schiffsholding and TTW Public
Can any of the company-specific risk be diversified away by investing in both HAMMONIA Schiffsholding and TTW Public 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 TTW Public 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 TTW Public, you can compare the effects of market volatilities on HAMMONIA Schiffsholding and TTW Public 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 TTW Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAMMONIA Schiffsholding and TTW Public.
Diversification Opportunities for HAMMONIA Schiffsholding and TTW Public
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HAMMONIA and TTW is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HAMMONIA Schiffsholding AG and TTW Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTW Public 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 TTW Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTW Public has no effect on the direction of HAMMONIA Schiffsholding i.e., HAMMONIA Schiffsholding and TTW Public go up and down completely randomly.
Pair Corralation between HAMMONIA Schiffsholding and TTW Public
Assuming the 90 days trading horizon HAMMONIA Schiffsholding AG is expected to generate 0.27 times more return on investment than TTW Public. However, HAMMONIA Schiffsholding AG is 3.66 times less risky than TTW Public. It trades about 0.13 of its potential returns per unit of risk. TTW Public is currently generating about 0.01 per unit of risk. If you would invest 28,600 in HAMMONIA Schiffsholding AG on December 1, 2024 and sell it today you would earn a total of 400.00 from holding HAMMONIA Schiffsholding AG or generate 1.4% 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. TTW Public
Performance |
| Timeline |
| HAMMONIA Schiffsholding |
| TTW Public |
HAMMONIA Schiffsholding and TTW Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAMMONIA Schiffsholding and TTW Public
The main advantage of trading using opposite HAMMONIA Schiffsholding and TTW Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAMMONIA Schiffsholding position performs unexpectedly, TTW Public 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 TTW Public will offset losses from the drop in TTW Public's long position.The idea behind HAMMONIA Schiffsholding AG and TTW Public 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.| TTW Public vs. Compugroup Medical SE | TTW Public vs. Apyx Medical Corp | TTW Public vs. BAKED GAMES SA | TTW Public vs. SCANDMEDICAL SOLDK 040 |
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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