Correlation Between HomeToGo and REDSUN PROPERTIES
Can any of the company-specific risk be diversified away by investing in both HomeToGo and REDSUN PROPERTIES 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 HomeToGo and REDSUN PROPERTIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeToGo SE and REDSUN PROPERTIES GROUP, you can compare the effects of market volatilities on HomeToGo and REDSUN PROPERTIES 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 HomeToGo with a short position of REDSUN PROPERTIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeToGo and REDSUN PROPERTIES.
Diversification Opportunities for HomeToGo and REDSUN PROPERTIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HomeToGo and REDSUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HomeToGo SE and REDSUN PROPERTIES GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDSUN PROPERTIES and HomeToGo 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 HomeToGo SE are associated (or correlated) with REDSUN PROPERTIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDSUN PROPERTIES has no effect on the direction of HomeToGo i.e., HomeToGo and REDSUN PROPERTIES go up and down completely randomly.
Pair Corralation between HomeToGo and REDSUN PROPERTIES
If you would invest 190.00 in HomeToGo SE on September 12, 2024 and sell it today you would earn a total of 24.00 from holding HomeToGo SE or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
HomeToGo SE vs. REDSUN PROPERTIES GROUP
Performance |
| Timeline |
| HomeToGo SE |
| REDSUN PROPERTIES |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
HomeToGo and REDSUN PROPERTIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HomeToGo and REDSUN PROPERTIES
The main advantage of trading using opposite HomeToGo and REDSUN PROPERTIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeToGo position performs unexpectedly, REDSUN PROPERTIES 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 REDSUN PROPERTIES will offset losses from the drop in REDSUN PROPERTIES's long position.| HomeToGo vs. DICKS Sporting Goods | HomeToGo vs. USWE SPORTS AB | HomeToGo vs. Transport International Holdings | HomeToGo vs. JD SPORTS FASH |
| REDSUN PROPERTIES vs. MGIC INVESTMENT | REDSUN PROPERTIES vs. HK Electric Investments | REDSUN PROPERTIES vs. Aegean Airlines SA | REDSUN PROPERTIES vs. International Consolidated Airlines |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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