Correlation Between HMS Networks and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both HMS Networks and Goodbye Kansas 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 HMS Networks and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HMS Networks AB and Goodbye Kansas Group, you can compare the effects of market volatilities on HMS Networks and Goodbye Kansas 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 HMS Networks with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMS Networks and Goodbye Kansas.
Diversification Opportunities for HMS Networks and Goodbye Kansas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HMS and Goodbye is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HMS Networks AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and HMS Networks 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 HMS Networks AB are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of HMS Networks i.e., HMS Networks and Goodbye Kansas go up and down completely randomly.
Pair Corralation between HMS Networks and Goodbye Kansas
Assuming the 90 days trading horizon HMS Networks AB is expected to generate 0.32 times more return on investment than Goodbye Kansas. However, HMS Networks AB is 3.15 times less risky than Goodbye Kansas. It trades about -0.03 of its potential returns per unit of risk. Goodbye Kansas Group is currently generating about -0.08 per unit of risk. If you would invest 39,560 in HMS Networks AB on September 1, 2024 and sell it today you would lose (540.00) from holding HMS Networks AB or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HMS Networks AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| HMS Networks AB |
| Goodbye Kansas Group |
HMS Networks and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMS Networks and Goodbye Kansas
The main advantage of trading using opposite HMS Networks and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMS Networks position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| HMS Networks vs. Vitec Software Group | HMS Networks vs. Troax Group AB | HMS Networks vs. Sectra AB | HMS Networks vs. Addnode Group AB |
| Goodbye Kansas vs. Viaplay Group AB | Goodbye Kansas vs. Nordea Bank Abp | Goodbye Kansas vs. Norion Bank | Goodbye Kansas vs. Skandinaviska Enskilda Banken |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |