Correlation Between Hexatronic Group and Vitrolife
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Vitrolife 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 Vitrolife 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 Vitrolife AB, you can compare the effects of market volatilities on Hexatronic Group and Vitrolife 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 Vitrolife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Vitrolife.
Diversification Opportunities for Hexatronic Group and Vitrolife
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hexatronic and Vitrolife is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Vitrolife AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitrolife 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 Vitrolife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitrolife AB has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Vitrolife go up and down completely randomly.
Pair Corralation between Hexatronic Group and Vitrolife
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the Vitrolife. In addition to that, Hexatronic Group is 1.65 times more volatile than Vitrolife AB. It trades about -0.01 of its total potential returns per unit of risk. Vitrolife AB is currently generating about 0.01 per unit of volatility. If you would invest 23,172 in Vitrolife AB on August 26, 2024 and sell it today you would lose (1,032) from holding Vitrolife AB or give up 4.45% 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. Vitrolife AB
Performance |
| Timeline |
| Hexatronic Group |
| Vitrolife AB |
Hexatronic Group and Vitrolife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and Vitrolife
The main advantage of trading using opposite Hexatronic Group and Vitrolife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Vitrolife 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 Vitrolife will offset losses from the drop in Vitrolife's long position.| Hexatronic Group vs. Addtech AB | Hexatronic Group vs. Teqnion AB | Hexatronic Group vs. Vitec Software Group | Hexatronic Group vs. Lagercrantz 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |