Correlation Between Hexagon Purus and Scatec Solar
Can any of the company-specific risk be diversified away by investing in both Hexagon Purus and Scatec Solar 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 Scatec Solar 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 Scatec Solar OL, you can compare the effects of market volatilities on Hexagon Purus and Scatec Solar 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 Scatec Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon Purus and Scatec Solar.
Diversification Opportunities for Hexagon Purus and Scatec Solar
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hexagon and Scatec is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon Purus As and Scatec Solar OL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scatec Solar OL 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 Scatec Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scatec Solar OL has no effect on the direction of Hexagon Purus i.e., Hexagon Purus and Scatec Solar go up and down completely randomly.
Pair Corralation between Hexagon Purus and Scatec Solar
Assuming the 90 days trading horizon Hexagon Purus As is expected to under-perform the Scatec Solar. In addition to that, Hexagon Purus is 2.09 times more volatile than Scatec Solar OL. It trades about -0.21 of its total potential returns per unit of risk. Scatec Solar OL is currently generating about 0.04 per unit of volatility. If you would invest 7,960 in Scatec Solar OL on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Scatec Solar OL or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexagon Purus As vs. Scatec Solar OL
Performance |
| Timeline |
| Hexagon Purus As |
| Scatec Solar OL |
Hexagon Purus and Scatec Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon Purus and Scatec Solar
The main advantage of trading using opposite Hexagon Purus and Scatec Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon Purus position performs unexpectedly, Scatec Solar 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 Scatec Solar will offset losses from the drop in Scatec Solar's long position.| Hexagon Purus vs. Scana ASA | Hexagon Purus vs. Elkem ASA | Hexagon Purus vs. Integrated Wind Solutions | Hexagon Purus vs. Vow ASA |
| Scatec Solar vs. Hexagon Purus As | Scatec Solar vs. Zaptec AS | Scatec Solar vs. Nel ASA | Scatec Solar vs. Elkem 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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