Correlation Between HMS Networks and KebNi AB
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By analyzing existing cross correlation between HMS Networks AB and KebNi AB, you can compare the effects of market volatilities on HMS Networks and KebNi AB 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMS Networks and KebNi AB.
Diversification Opportunities for HMS Networks and KebNi AB
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HMS and KebNi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding HMS Networks AB and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi AB 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of HMS Networks i.e., HMS Networks and KebNi AB go up and down completely randomly.
Pair Corralation between HMS Networks and KebNi AB
Assuming the 90 days trading horizon HMS Networks is expected to generate 2.57 times less return on investment than KebNi AB. But when comparing it to its historical volatility, HMS Networks AB is 1.69 times less risky than KebNi AB. It trades about 0.14 of its potential returns per unit of risk. KebNi AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 106.00 in KebNi AB on November 28, 2024 and sell it today you would earn a total of 24.00 from holding KebNi AB or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMS Networks AB vs. KebNi AB
Performance |
| Timeline |
| HMS Networks AB |
| KebNi AB |
HMS Networks and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMS Networks and KebNi AB
The main advantage of trading using opposite HMS Networks and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMS Networks position performs unexpectedly, KebNi AB 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 KebNi AB will offset losses from the drop in KebNi AB's 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 |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development AB | KebNi AB vs. Mekonomen AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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