Correlation Between Hexatronic Group and Jetpak Top
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Jetpak Top 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 Jetpak Top 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 Jetpak Top Holding, you can compare the effects of market volatilities on Hexatronic Group and Jetpak Top 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 Jetpak Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Jetpak Top.
Diversification Opportunities for Hexatronic Group and Jetpak Top
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hexatronic and Jetpak is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Jetpak Top Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetpak Top Holding 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 Jetpak Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetpak Top Holding has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Jetpak Top go up and down completely randomly.
Pair Corralation between Hexatronic Group and Jetpak Top
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the Jetpak Top. In addition to that, Hexatronic Group is 1.93 times more volatile than Jetpak Top Holding. It trades about -0.29 of its total potential returns per unit of risk. Jetpak Top Holding is currently generating about -0.07 per unit of volatility. If you would invest 10,600 in Jetpak Top Holding on September 1, 2024 and sell it today you would lose (200.00) from holding Jetpak Top Holding or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexatronic Group AB vs. Jetpak Top Holding
Performance |
| Timeline |
| Hexatronic Group |
| Jetpak Top Holding |
Hexatronic Group and Jetpak Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and Jetpak Top
The main advantage of trading using opposite Hexatronic Group and Jetpak Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Jetpak Top 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 Jetpak Top will offset losses from the drop in Jetpak Top's long position.| Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Embracer Group AB | Hexatronic Group vs. Evolution AB |
| Jetpak Top vs. Alimak Hek Group | Jetpak Top vs. Balco Group AB | Jetpak Top vs. Bulten AB | Jetpak Top vs. Rejlers 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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