Correlation Between Hansen Technologies and Infomedia
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Infomedia 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 Infomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Infomedia, you can compare the effects of market volatilities on Hansen Technologies and Infomedia 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 Infomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Infomedia.
Diversification Opportunities for Hansen Technologies and Infomedia
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hansen and Infomedia is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia 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 Infomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Infomedia go up and down completely randomly.
Pair Corralation between Hansen Technologies and Infomedia
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 0.76 times more return on investment than Infomedia. However, Hansen Technologies is 1.32 times less risky than Infomedia. It trades about 0.1 of its potential returns per unit of risk. Infomedia is currently generating about -0.04 per unit of risk. If you would invest 460.00 in Hansen Technologies on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Hansen Technologies or generate 26.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansen Technologies vs. Infomedia
Performance |
| Timeline |
| Hansen Technologies |
| Infomedia |
Hansen Technologies and Infomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Infomedia
The main advantage of trading using opposite Hansen Technologies and Infomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Infomedia 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 Infomedia will offset losses from the drop in Infomedia's long position.| Hansen Technologies vs. Commonwealth Bank | Hansen Technologies vs. Commonwealth Bank of | Hansen Technologies vs. Champion Iron | Hansen Technologies vs. iShares Global Healthcare |
| Infomedia vs. Commonwealth Bank | Infomedia vs. Commonwealth Bank of | Infomedia vs. Champion Iron | Infomedia vs. iShares Global 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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