Correlation Between Hologic and Deutz AG
Can any of the company-specific risk be diversified away by investing in both Hologic and Deutz AG 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 Hologic and Deutz AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and Deutz AG, you can compare the effects of market volatilities on Hologic and Deutz AG 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 Hologic with a short position of Deutz AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and Deutz AG.
Diversification Opportunities for Hologic and Deutz AG
Very good diversification
The 3 months correlation between Hologic and Deutz is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and Deutz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutz AG and Hologic 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 Hologic are associated (or correlated) with Deutz AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutz AG has no effect on the direction of Hologic i.e., Hologic and Deutz AG go up and down completely randomly.
Pair Corralation between Hologic and Deutz AG
Assuming the 90 days horizon Hologic is expected to under-perform the Deutz AG. But the stock apears to be less risky and, when comparing its historical volatility, Hologic is 1.87 times less risky than Deutz AG. The stock trades about -0.1 of its potential returns per unit of risk. The Deutz AG is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Deutz AG on September 13, 2024 and sell it today you would lose (4.00) from holding Deutz AG or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. Deutz AG
Performance |
| Timeline |
| Hologic |
| Deutz AG |
Hologic and Deutz AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and Deutz AG
The main advantage of trading using opposite Hologic and Deutz AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic position performs unexpectedly, Deutz AG 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 Deutz AG will offset losses from the drop in Deutz AG's long position.| Hologic vs. Superior Plus Corp | Hologic vs. NMI Holdings | Hologic vs. SIVERS SEMICONDUCTORS AB | Hologic vs. NorAm Drilling AS |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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