Correlation Between Hexatronic Group and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Maven Wireless 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 Maven Wireless 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 Maven Wireless Sweden, you can compare the effects of market volatilities on Hexatronic Group and Maven Wireless 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 Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Maven Wireless.
Diversification Opportunities for Hexatronic Group and Maven Wireless
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hexatronic and Maven is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Maven Wireless Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maven Wireless Sweden 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 Maven Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maven Wireless Sweden has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Maven Wireless go up and down completely randomly.
Pair Corralation between Hexatronic Group and Maven Wireless
Assuming the 90 days trading horizon Hexatronic Group AB is expected to generate 0.8 times more return on investment than Maven Wireless. However, Hexatronic Group AB is 1.25 times less risky than Maven Wireless. It trades about -0.3 of its potential returns per unit of risk. Maven Wireless Sweden is currently generating about -0.27 per unit of risk. If you would invest 4,358 in Hexatronic Group AB on September 2, 2024 and sell it today you would lose (597.00) from holding Hexatronic Group AB or give up 13.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexatronic Group AB vs. Maven Wireless Sweden
Performance |
| Timeline |
| Hexatronic Group |
| Maven Wireless Sweden |
Hexatronic Group and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and Maven Wireless
The main advantage of trading using opposite Hexatronic Group and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Maven Wireless 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 Maven Wireless will offset losses from the drop in Maven Wireless' long position.| Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Embracer Group AB | Hexatronic Group vs. Evolution AB |
| Maven Wireless vs. Checkin Group AB | Maven Wireless vs. Midsummer AB | Maven Wireless vs. Hexatronic Group AB | Maven Wireless vs. Cint Group 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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