Correlation Between Hansen Technologies and Energy Resources
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Energy Resources 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 Energy Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Energy Resources, you can compare the effects of market volatilities on Hansen Technologies and Energy Resources 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 Energy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Energy Resources.
Diversification Opportunities for Hansen Technologies and Energy Resources
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hansen and Energy is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Resources 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 Energy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Resources has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Energy Resources go up and down completely randomly.
Pair Corralation between Hansen Technologies and Energy Resources
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 3.2 times less return on investment than Energy Resources. But when comparing it to its historical volatility, Hansen Technologies is 19.49 times less risky than Energy Resources. It trades about 0.47 of its potential returns per unit of risk. Energy Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Energy Resources on September 1, 2024 and sell it today you would lose (0.10) from holding Energy Resources or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hansen Technologies vs. Energy Resources
Performance |
| Timeline |
| Hansen Technologies |
| Energy Resources |
Hansen Technologies and Energy Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Energy Resources
The main advantage of trading using opposite Hansen Technologies and Energy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Energy Resources 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 Energy Resources will offset losses from the drop in Energy Resources' long position.| Hansen Technologies vs. Audio Pixels Holdings | Hansen Technologies vs. Norwest Minerals | Hansen Technologies vs. Lindian Resources | Hansen Technologies vs. Rumble Resources |
| Energy Resources vs. Clime Investment Management | Energy Resources vs. Hotel Property Investments | Energy Resources vs. Charter Hall Retail | Energy Resources vs. Garda Diversified Ppty |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |