Correlation Between Hexagon Purus and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Hexagon Purus and Cambi ASA 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 Hexagon Purus and Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexagon Purus As and Cambi ASA, you can compare the effects of market volatilities on Hexagon Purus and Cambi ASA 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 Hexagon Purus with a short position of Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon Purus and Cambi ASA.
Diversification Opportunities for Hexagon Purus and Cambi ASA
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hexagon and Cambi is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon Purus As and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA and Hexagon Purus 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 Hexagon Purus As are associated (or correlated) with Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Hexagon Purus i.e., Hexagon Purus and Cambi ASA go up and down completely randomly.
Pair Corralation between Hexagon Purus and Cambi ASA
Assuming the 90 days trading horizon Hexagon Purus As is expected to under-perform the Cambi ASA. In addition to that, Hexagon Purus is 1.31 times more volatile than Cambi ASA. It trades about -0.05 of its total potential returns per unit of risk. Cambi ASA is currently generating about 0.08 per unit of volatility. If you would invest 460.00 in Cambi ASA on September 4, 2024 and sell it today you would earn a total of 950.00 from holding Cambi ASA or generate 206.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexagon Purus As vs. Cambi ASA
Performance |
| Timeline |
| Hexagon Purus As |
| Cambi ASA |
Hexagon Purus and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon Purus and Cambi ASA
The main advantage of trading using opposite Hexagon Purus and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon Purus position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Hexagon Purus vs. SD Standard Drilling | Hexagon Purus vs. Helgeland Sparebank | Hexagon Purus vs. Grong Sparebank | Hexagon Purus vs. Odfjell Technology |
| Cambi ASA vs. Tomra Systems ASA | Cambi ASA vs. Waste Plastic Upcycling | Cambi ASA vs. Vow Green Metals | Cambi ASA vs. Pryme BV |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |