Correlation Between H2O Retailing and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both H2O Retailing and TRADEDOUBLER 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 H2O Retailing and TRADEDOUBLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H2O Retailing and TRADEDOUBLER AB SK, you can compare the effects of market volatilities on H2O Retailing and TRADEDOUBLER 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 H2O Retailing with a short position of TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of H2O Retailing and TRADEDOUBLER.
Diversification Opportunities for H2O Retailing and TRADEDOUBLER
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between H2O and TRADEDOUBLER is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding H2O Retailing and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK and H2O Retailing 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 H2O Retailing are associated (or correlated) with TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of H2O Retailing i.e., H2O Retailing and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between H2O Retailing and TRADEDOUBLER
Assuming the 90 days horizon H2O Retailing is expected to generate 0.77 times more return on investment than TRADEDOUBLER. However, H2O Retailing is 1.3 times less risky than TRADEDOUBLER. It trades about 0.07 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about 0.0 per unit of risk. If you would invest 638.00 in H2O Retailing on October 19, 2024 and sell it today you would earn a total of 702.00 from holding H2O Retailing or generate 110.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H2O Retailing vs. TRADEDOUBLER AB SK
Performance |
| Timeline |
| H2O Retailing |
| TRADEDOUBLER AB SK |
H2O Retailing and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H2O Retailing and TRADEDOUBLER
The main advantage of trading using opposite H2O Retailing and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H2O Retailing position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| H2O Retailing vs. DAIRY FARM INTL | H2O Retailing vs. FARM 51 GROUP | H2O Retailing vs. MAVEN WIRELESS SWEDEN | H2O Retailing vs. Sumitomo Mitsui Construction |
| TRADEDOUBLER vs. Casio Computer CoLtd | TRADEDOUBLER vs. Easy Software AG | TRADEDOUBLER vs. Penta Ocean Construction Co | TRADEDOUBLER vs. Tokyu Construction Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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