Correlation Between HT5 N and Roche Holding
Can any of the company-specific risk be diversified away by investing in both HT5 N and Roche Holding 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 HT5 N and Roche Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HT5 N LTD and Roche Holding AG, you can compare the effects of market volatilities on HT5 N and Roche Holding 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 HT5 N with a short position of Roche Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HT5 N and Roche Holding.
Diversification Opportunities for HT5 N and Roche Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HT5 and Roche is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding HT5 N LTD and Roche Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roche Holding AG and HT5 N 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 HT5 N LTD are associated (or correlated) with Roche Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roche Holding AG has no effect on the direction of HT5 N i.e., HT5 N and Roche Holding go up and down completely randomly.
Pair Corralation between HT5 N and Roche Holding
Assuming the 90 days trading horizon HT5 N LTD is expected to generate 3.17 times more return on investment than Roche Holding. However, HT5 N is 3.17 times more volatile than Roche Holding AG. It trades about 0.12 of its potential returns per unit of risk. Roche Holding AG is currently generating about 0.33 per unit of risk. If you would invest 160.00 in HT5 N LTD on November 7, 2025 and sell it today you would earn a total of 49.00 from holding HT5 N LTD or generate 30.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
HT5 N LTD vs. Roche Holding AG
Performance |
| Timeline |
| HT5 N LTD |
| Roche Holding AG |
HT5 N and Roche Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HT5 N and Roche Holding
The main advantage of trading using opposite HT5 N and Roche Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HT5 N position performs unexpectedly, Roche Holding 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 Roche Holding will offset losses from the drop in Roche Holding's long position.| HT5 N vs. Emmi AG | HT5 N vs. Feintool International Holding | HT5 N vs. Implenia AG | HT5 N vs. Bossard Holding AG |
| Roche Holding vs. Novartis AG | Roche Holding vs. COSMO Pharmaceuticals SA | Roche Holding vs. Siegfried Holding | Roche Holding vs. Sonova H Ag |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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