Correlation Between Hexagon Purus and Impact Coatings
Can any of the company-specific risk be diversified away by investing in both Hexagon Purus and Impact Coatings 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 Impact Coatings 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 Impact Coatings publ, you can compare the effects of market volatilities on Hexagon Purus and Impact Coatings 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 Impact Coatings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon Purus and Impact Coatings.
Diversification Opportunities for Hexagon Purus and Impact Coatings
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hexagon and Impact is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon Purus As and Impact Coatings publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Coatings publ 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 Impact Coatings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Coatings publ has no effect on the direction of Hexagon Purus i.e., Hexagon Purus and Impact Coatings go up and down completely randomly.
Pair Corralation between Hexagon Purus and Impact Coatings
Assuming the 90 days trading horizon Hexagon Purus As is expected to under-perform the Impact Coatings. In addition to that, Hexagon Purus is 1.07 times more volatile than Impact Coatings publ. It trades about -0.3 of its total potential returns per unit of risk. Impact Coatings publ is currently generating about 0.03 per unit of volatility. If you would invest 412.00 in Impact Coatings publ on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Impact Coatings publ or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexagon Purus As vs. Impact Coatings publ
Performance |
| Timeline |
| Hexagon Purus As |
| Impact Coatings publ |
Hexagon Purus and Impact Coatings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon Purus and Impact Coatings
The main advantage of trading using opposite Hexagon Purus and Impact Coatings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon Purus position performs unexpectedly, Impact Coatings 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 Impact Coatings will offset losses from the drop in Impact Coatings' long position.| Hexagon Purus vs. Clean Seas Seafood | Hexagon Purus vs. Xplora Technologies As | Hexagon Purus vs. Arcticzymes Technologies ASA | Hexagon Purus vs. 5Th Planet Games |
| Impact Coatings vs. Powercell Sweden | Impact Coatings vs. Teco 2030 Asa | Impact Coatings vs. Hexagon Purus As | Impact Coatings vs. Minesto 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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