Correlation Between Humble Group and Hexatronic Group
Can any of the company-specific risk be diversified away by investing in both Humble Group and Hexatronic Group 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 Humble Group and Hexatronic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humble Group AB and Hexatronic Group AB, you can compare the effects of market volatilities on Humble Group and Hexatronic Group 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 Humble Group with a short position of Hexatronic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humble Group and Hexatronic Group.
Diversification Opportunities for Humble Group and Hexatronic Group
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humble and Hexatronic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Humble Group AB and Hexatronic Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexatronic Group and Humble 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 Humble Group AB are associated (or correlated) with Hexatronic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexatronic Group has no effect on the direction of Humble Group i.e., Humble Group and Hexatronic Group go up and down completely randomly.
Pair Corralation between Humble Group and Hexatronic Group
Assuming the 90 days trading horizon Humble Group AB is expected to generate 0.73 times more return on investment than Hexatronic Group. However, Humble Group AB is 1.38 times less risky than Hexatronic Group. It trades about 0.01 of its potential returns per unit of risk. Hexatronic Group AB is currently generating about -0.01 per unit of risk. If you would invest 1,217 in Humble Group AB on October 24, 2024 and sell it today you would lose (1.00) from holding Humble Group AB or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humble Group AB vs. Hexatronic Group AB
Performance |
| Timeline |
| Humble Group AB |
| Hexatronic Group |
Humble Group and Hexatronic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humble Group and Hexatronic Group
The main advantage of trading using opposite Humble Group and Hexatronic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humble Group position performs unexpectedly, Hexatronic Group 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 Hexatronic Group will offset losses from the drop in Hexatronic Group's long position.| Humble Group vs. Samhllsbyggnadsbolaget i Norden | Humble Group vs. Media and Games | Humble Group vs. Hexatronic Group AB | Humble Group vs. Sinch AB |
| Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Embracer Group AB | Hexatronic Group vs. Evolution 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |