Correlation Between Hansen Technologies and Superior Resources
Can any of the company-specific risk be diversified away by investing in both Hansen Technologies and Superior 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 Superior 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 Superior Resources, you can compare the effects of market volatilities on Hansen Technologies and Superior 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 Superior Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansen Technologies and Superior Resources.
Diversification Opportunities for Hansen Technologies and Superior Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hansen and Superior is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Superior Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior 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 Superior Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Resources has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Superior Resources go up and down completely randomly.
Pair Corralation between Hansen Technologies and Superior Resources
Assuming the 90 days trading horizon Hansen Technologies is expected to generate 0.21 times more return on investment than Superior Resources. However, Hansen Technologies is 4.68 times less risky than Superior Resources. It trades about 0.47 of its potential returns per unit of risk. Superior Resources is currently generating about 0.03 per unit of risk. If you would invest 490.00 in Hansen Technologies on September 4, 2024 and sell it today you would earn a total of 83.00 from holding Hansen Technologies or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansen Technologies vs. Superior Resources
Performance |
| Timeline |
| Hansen Technologies |
| Superior Resources |
Hansen Technologies and Superior Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansen Technologies and Superior Resources
The main advantage of trading using opposite Hansen Technologies and Superior Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansen Technologies position performs unexpectedly, Superior 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 Superior Resources will offset losses from the drop in Superior Resources' long position.| Hansen Technologies vs. Aneka Tambang Tbk | Hansen Technologies vs. BHP Group Limited | Hansen Technologies vs. Commonwealth Bank of | Hansen Technologies vs. Commonwealth Bank of |
| Superior Resources vs. Dug Technology | Superior Resources vs. Charter Hall Retail | Superior Resources vs. Dexus Convenience Retail | Superior Resources vs. Hansen Technologies |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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