Correlation Between Hexatronic Group and TalkPool
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and TalkPool 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 TalkPool 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 TalkPool AG, you can compare the effects of market volatilities on Hexatronic Group and TalkPool 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 TalkPool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and TalkPool.
Diversification Opportunities for Hexatronic Group and TalkPool
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hexatronic and TalkPool is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and TalkPool AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TalkPool AG 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 TalkPool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TalkPool AG has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and TalkPool go up and down completely randomly.
Pair Corralation between Hexatronic Group and TalkPool
Assuming the 90 days trading horizon Hexatronic Group AB is expected to generate 1.26 times more return on investment than TalkPool. However, Hexatronic Group is 1.26 times more volatile than TalkPool AG. It trades about 0.07 of its potential returns per unit of risk. TalkPool AG is currently generating about 0.05 per unit of risk. If you would invest 2,120 in Hexatronic Group AB on September 2, 2024 and sell it today you would earn a total of 1,641 from holding Hexatronic Group AB or generate 77.41% 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. TalkPool AG
Performance |
| Timeline |
| Hexatronic Group |
| TalkPool AG |
Hexatronic Group and TalkPool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and TalkPool
The main advantage of trading using opposite Hexatronic Group and TalkPool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, TalkPool 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 TalkPool will offset losses from the drop in TalkPool'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 |
| TalkPool vs. Checkin Group AB | TalkPool vs. Midsummer AB | TalkPool vs. Hexatronic Group AB | TalkPool 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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