Correlation Between HM Inwest and Agroton Public
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Agroton 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 HM Inwest and Agroton Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Agroton Public, you can compare the effects of market volatilities on HM Inwest and Agroton 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 HM Inwest with a short position of Agroton Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Agroton Public.
Diversification Opportunities for HM Inwest and Agroton Public
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HMI and Agroton is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public and HM Inwest 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 HM Inwest SA are associated (or correlated) with Agroton Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroton Public has no effect on the direction of HM Inwest i.e., HM Inwest and Agroton Public go up and down completely randomly.
Pair Corralation between HM Inwest and Agroton Public
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 1.18 times more return on investment than Agroton Public. However, HM Inwest is 1.18 times more volatile than Agroton Public. It trades about 0.13 of its potential returns per unit of risk. Agroton Public is currently generating about 0.08 per unit of risk. If you would invest 3,570 in HM Inwest SA on September 12, 2024 and sell it today you would earn a total of 930.00 from holding HM Inwest SA or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HM Inwest SA vs. Agroton Public
Performance |
| Timeline |
| HM Inwest SA |
| Agroton Public |
HM Inwest and Agroton Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Agroton Public
The main advantage of trading using opposite HM Inwest and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Agroton 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 Agroton Public will offset losses from the drop in Agroton Public's long position.| HM Inwest vs. Bank Millennium SA | HM Inwest vs. Echo Investment SA | HM Inwest vs. PZ Cormay SA | HM Inwest vs. Intersport Polska SA |
| Agroton Public vs. Astarta Holding NV | Agroton Public vs. Asseco Business Solutions | Agroton Public vs. Detalion Games SA | Agroton Public vs. Kogeneracja SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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