Correlation Between Hexatronic Group and K Fast
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By analyzing existing cross correlation between Hexatronic Group AB and K Fast Holding AB, you can compare the effects of market volatilities on Hexatronic Group and K Fast 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 K Fast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and K Fast.
Diversification Opportunities for Hexatronic Group and K Fast
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hexatronic and KFAST-B is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and K Fast Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Fast 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 K Fast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Fast Holding has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and K Fast go up and down completely randomly.
Pair Corralation between Hexatronic Group and K Fast
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the K Fast. But the stock apears to be less risky and, when comparing its historical volatility, Hexatronic Group AB is 1.05 times less risky than K Fast. The stock trades about -0.3 of its potential returns per unit of risk. The K Fast Holding AB is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 2,155 in K Fast Holding AB on September 2, 2024 and sell it today you would lose (185.00) from holding K Fast Holding AB or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexatronic Group AB vs. K Fast Holding AB
Performance |
| Timeline |
| Hexatronic Group |
| K Fast Holding |
Hexatronic Group and K Fast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and K Fast
The main advantage of trading using opposite Hexatronic Group and K Fast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, K Fast 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 K Fast will offset losses from the drop in K Fast'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 |
| K Fast vs. Fastighets AB Balder | K Fast vs. Fabege AB | K Fast vs. Wihlborgs Fastigheter AB | K Fast vs. Castellum 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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