Correlation Between Hexagon Purus and Ocean Sun
Can any of the company-specific risk be diversified away by investing in both Hexagon Purus and Ocean Sun 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 Ocean Sun 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 Ocean Sun As, you can compare the effects of market volatilities on Hexagon Purus and Ocean Sun 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 Ocean Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon Purus and Ocean Sun.
Diversification Opportunities for Hexagon Purus and Ocean Sun
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hexagon and Ocean is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon Purus As and Ocean Sun As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Sun As 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 Ocean Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Sun As has no effect on the direction of Hexagon Purus i.e., Hexagon Purus and Ocean Sun go up and down completely randomly.
Pair Corralation between Hexagon Purus and Ocean Sun
Assuming the 90 days trading horizon Hexagon Purus As is expected to under-perform the Ocean Sun. But the stock apears to be less risky and, when comparing its historical volatility, Hexagon Purus As is 1.22 times less risky than Ocean Sun. The stock trades about -0.07 of its potential returns per unit of risk. The Ocean Sun As is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Ocean Sun As on September 1, 2024 and sell it today you would lose (130.00) from holding Ocean Sun As or give up 40.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Hexagon Purus As vs. Ocean Sun As
Performance |
| Timeline |
| Hexagon Purus As |
| Ocean Sun As |
Hexagon Purus and Ocean Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon Purus and Ocean Sun
The main advantage of trading using opposite Hexagon Purus and Ocean Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon Purus position performs unexpectedly, Ocean Sun 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 Ocean Sun will offset losses from the drop in Ocean Sun's long position.| Hexagon Purus vs. Scana ASA | Hexagon Purus vs. Elkem ASA | Hexagon Purus vs. Integrated Wind Solutions | Hexagon Purus vs. Vow ASA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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