Correlation Between HM Inwest and Comp SA
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Comp SA 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 Comp SA 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 Comp SA, you can compare the effects of market volatilities on HM Inwest and Comp SA 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 Comp SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Comp SA.
Diversification Opportunities for HM Inwest and Comp SA
Very good diversification
The 3 months correlation between HMI and Comp is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Comp SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comp SA 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 Comp SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comp SA has no effect on the direction of HM Inwest i.e., HM Inwest and Comp SA go up and down completely randomly.
Pair Corralation between HM Inwest and Comp SA
Assuming the 90 days trading horizon HM Inwest is expected to generate 26.55 times less return on investment than Comp SA. But when comparing it to its historical volatility, HM Inwest SA is 3.96 times less risky than Comp SA. It trades about 0.04 of its potential returns per unit of risk. Comp SA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 11,200 in Comp SA on September 2, 2024 and sell it today you would earn a total of 650.00 from holding Comp SA or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HM Inwest SA vs. Comp SA
Performance |
| Timeline |
| HM Inwest SA |
| Comp SA |
HM Inwest and Comp SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Comp SA
The main advantage of trading using opposite HM Inwest and Comp SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Comp SA 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 Comp SA will offset losses from the drop in Comp SA's long position.| HM Inwest vs. Carlson Investments SA | HM Inwest vs. Gaming Factory SA | HM Inwest vs. Enter Air SA | HM Inwest vs. PZ Cormay SA |
| Comp SA vs. Intersport Polska SA | Comp SA vs. Saule Technologies SA | Comp SA vs. Noble Financials SA | Comp SA vs. Gaming Factory 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |