Correlation Between HM Inwest and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Creotech Instruments 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 Creotech Instruments 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 Creotech Instruments SA, you can compare the effects of market volatilities on HM Inwest and Creotech Instruments 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 Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Creotech Instruments.
Diversification Opportunities for HM Inwest and Creotech Instruments
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HMI and Creotech is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments 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 Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of HM Inwest i.e., HM Inwest and Creotech Instruments go up and down completely randomly.
Pair Corralation between HM Inwest and Creotech Instruments
Assuming the 90 days trading horizon HM Inwest SA is expected to generate 0.79 times more return on investment than Creotech Instruments. However, HM Inwest SA is 1.27 times less risky than Creotech Instruments. It trades about 0.02 of its potential returns per unit of risk. Creotech Instruments SA is currently generating about -0.03 per unit of risk. If you would invest 4,710 in HM Inwest SA on September 1, 2024 and sell it today you would earn a total of 90.00 from holding HM Inwest SA or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
HM Inwest SA vs. Creotech Instruments SA
Performance |
| Timeline |
| HM Inwest SA |
| Creotech Instruments |
HM Inwest and Creotech Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Creotech Instruments
The main advantage of trading using opposite HM Inwest and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.| HM Inwest vs. Mercator Medical SA | HM Inwest vs. Gaming Factory SA | HM Inwest vs. Intersport Polska SA | HM Inwest vs. CI Games SA |
| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. Asseco South Eastern | Creotech Instruments vs. CFI Holding 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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