Correlation Between Hansen Technologies and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Actinogen Medical 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 Hansen Technologies and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Actinogen Medical, you can compare the effects of market volatilities on Hansen Technologies and Actinogen Medical 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 Hansen Technologies with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Actinogen Medical.
Diversification Opportunities for Hansen Technologies and Actinogen Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hansen and Actinogen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Hansen Technologies 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 Hansen Technologies are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Actinogen Medical go up and down completely randomly.
Pair Corralation between Hansen Technologies and Actinogen Medical
Assuming the 90 days trading horizon Hansen Technologies is expected to under-perform the Actinogen Medical. But the stock apears to be less risky and, when comparing its historical volatility, Hansen Technologies is 3.67 times less risky than Actinogen Medical. The stock trades about -0.25 of its potential returns per unit of risk. The Actinogen Medical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2.60 in Actinogen Medical on October 16, 2024 and sell it today you would lose (0.10) from holding Actinogen Medical or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansen Technologies vs. Actinogen Medical
Performance |
| Timeline |
| Hansen Technologies |
| Actinogen Medical |
Hansen Technologies and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Actinogen Medical
The main advantage of trading using opposite Hansen Technologies and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Hansen Technologies vs. National Australia Bank | Hansen Technologies vs. Macquarie Bank Limited | Hansen Technologies vs. Insurance Australia Group | Hansen Technologies vs. Qbe Insurance Group |
| Actinogen Medical vs. Charter Hall Retail | Actinogen Medical vs. Aurelia Metals | Actinogen Medical vs. DY6 Metals | Actinogen Medical vs. Australian Agricultural |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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