Correlation Between Hansen Technologies and Charter Hall
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Charter Hall 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 Charter Hall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Charter Hall Retail, you can compare the effects of market volatilities on Hansen Technologies and Charter Hall 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 Charter Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Charter Hall.
Diversification Opportunities for Hansen Technologies and Charter Hall
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hansen and Charter is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Charter Hall Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Hall Retail 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 Charter Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Hall Retail has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Charter Hall go up and down completely randomly.
Pair Corralation between Hansen Technologies and Charter Hall
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 1.77 times more return on investment than Charter Hall. However, Hansen Technologies is 1.77 times more volatile than Charter Hall Retail. It trades about 0.05 of its potential returns per unit of risk. Charter Hall Retail is currently generating about -0.15 per unit of risk. If you would invest 527.00 in Hansen Technologies on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Hansen Technologies or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansen Technologies vs. Charter Hall Retail
Performance |
| Timeline |
| Hansen Technologies |
| Charter Hall Retail |
Hansen Technologies and Charter Hall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Charter Hall
The main advantage of trading using opposite Hansen Technologies and Charter Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Charter Hall 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 Charter Hall will offset losses from the drop in Charter Hall's long position.| Hansen Technologies vs. Aneka Tambang Tbk | Hansen Technologies vs. BHP Group Limited | Hansen Technologies vs. Commonwealth Bank | Hansen Technologies vs. Commonwealth Bank of |
| Charter Hall vs. Falcon Metals | Charter Hall vs. Homeco Daily Needs | Charter Hall vs. Austco Healthcare | Charter Hall vs. Fisher Paykel Healthcare |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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