Correlation Between Hexatronic Group and Humble Group
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Humble Group 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 Hexatronic Group and Humble Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexatronic Group AB and Humble Group AB, you can compare the effects of market volatilities on Hexatronic Group and Humble Group 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 Hexatronic Group with a short position of Humble Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Humble Group.
Diversification Opportunities for Hexatronic Group and Humble Group
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hexatronic and Humble is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Humble Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humble Group AB and Hexatronic Group 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 Hexatronic Group AB are associated (or correlated) with Humble Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humble Group AB has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Humble Group go up and down completely randomly.
Pair Corralation between Hexatronic Group and Humble Group
Assuming the 90 days trading horizon Hexatronic Group is expected to generate 103.43 times less return on investment than Humble Group. In addition to that, Hexatronic Group is 2.01 times more volatile than Humble Group AB. It trades about 0.0 of its total potential returns per unit of risk. Humble Group AB is currently generating about 0.06 per unit of volatility. If you would invest 850.00 in Humble Group AB on September 12, 2024 and sell it today you would earn a total of 386.00 from holding Humble Group AB or generate 45.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexatronic Group AB vs. Humble Group AB
Performance |
| Timeline |
| Hexatronic Group |
| Humble Group AB |
Hexatronic Group and Humble Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and Humble Group
The main advantage of trading using opposite Hexatronic Group and Humble Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Humble Group 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 Humble Group will offset losses from the drop in Humble Group's long position.| Hexatronic Group vs. Skandinaviska Enskilda Banken | Hexatronic Group vs. Skandinaviska Enskilda Banken | Hexatronic Group vs. Swedbank AB | Hexatronic Group vs. Svenska Handelsbanken AB |
| Humble Group vs. Samhllsbyggnadsbolaget i Norden | Humble Group vs. Media and Games | Humble Group vs. Hexatronic Group AB | Humble Group vs. Sinch AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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