Correlation Between Hansen Technologies and Nine Entertainment
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Nine Entertainment 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 Nine Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansen Technologies and Nine Entertainment Co, you can compare the effects of market volatilities on Hansen Technologies and Nine Entertainment 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 Nine Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Nine Entertainment.
Diversification Opportunities for Hansen Technologies and Nine Entertainment
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hansen and Nine is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Nine Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Entertainment 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 Nine Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Entertainment has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Nine Entertainment go up and down completely randomly.
Pair Corralation between Hansen Technologies and Nine Entertainment
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 1.03 times more return on investment than Nine Entertainment. However, Hansen Technologies is 1.03 times more volatile than Nine Entertainment Co. It trades about 0.03 of its potential returns per unit of risk. Nine Entertainment Co is currently generating about -0.05 per unit of risk. If you would invest 481.00 in Hansen Technologies on September 19, 2024 and sell it today you would earn a total of 57.00 from holding Hansen Technologies or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansen Technologies vs. Nine Entertainment Co
Performance |
| Timeline |
| Hansen Technologies |
| Nine Entertainment |
Hansen Technologies and Nine Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Nine Entertainment
The main advantage of trading using opposite Hansen Technologies and Nine Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Nine Entertainment 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 Nine Entertainment will offset losses from the drop in Nine Entertainment's long position.| Hansen Technologies vs. Neurotech International | Hansen Technologies vs. Centaurus Metals | Hansen Technologies vs. RLF AgTech | Hansen Technologies vs. Catalyst Metals |
| Nine Entertainment vs. Truscott Mining Corp | Nine Entertainment vs. Peel Mining | Nine Entertainment vs. Hansen Technologies | Nine Entertainment vs. Perseus Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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