Correlation Between Hansen Technologies and Iron Road
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Iron Road 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 Iron Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Iron Road, you can compare the effects of market volatilities on Hansen Technologies and Iron Road 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 Iron Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Iron Road.
Diversification Opportunities for Hansen Technologies and Iron Road
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hansen and Iron is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Iron Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Road 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 Iron Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Road has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Iron Road go up and down completely randomly.
Pair Corralation between Hansen Technologies and Iron Road
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 0.65 times more return on investment than Iron Road. However, Hansen Technologies is 1.55 times less risky than Iron Road. It trades about 0.11 of its potential returns per unit of risk. Iron Road is currently generating about -0.06 per unit of risk. If you would invest 461.00 in Hansen Technologies on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Hansen Technologies or generate 26.03% 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. Iron Road
Performance |
| Timeline |
| Hansen Technologies |
| Iron Road |
Hansen Technologies and Iron Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Iron Road
The main advantage of trading using opposite Hansen Technologies and Iron Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Iron Road 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 Iron Road will offset losses from the drop in Iron Road's long position.| Hansen Technologies vs. Audio Pixels Holdings | Hansen Technologies vs. Norwest Minerals | Hansen Technologies vs. Lindian Resources | Hansen Technologies vs. Rumble Resources |
| Iron Road vs. Northern Star Resources | Iron Road vs. Evolution Mining | Iron Road vs. Bluescope Steel | Iron Road vs. Sandfire Resources NL |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |