Correlation Between Hunter Group and Carasent ASA
Can any of the company-specific risk be diversified away by investing in both Hunter Group and Carasent ASA 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 Hunter Group and Carasent ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Group ASA and Carasent ASA, you can compare the effects of market volatilities on Hunter Group and Carasent ASA 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 Hunter Group with a short position of Carasent ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Group and Carasent ASA.
Diversification Opportunities for Hunter Group and Carasent ASA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hunter and Carasent is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Group ASA and Carasent ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carasent ASA and Hunter 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 Hunter Group ASA are associated (or correlated) with Carasent ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carasent ASA has no effect on the direction of Hunter Group i.e., Hunter Group and Carasent ASA go up and down completely randomly.
Pair Corralation between Hunter Group and Carasent ASA
Assuming the 90 days trading horizon Hunter Group is expected to generate 33.28 times less return on investment than Carasent ASA. In addition to that, Hunter Group is 2.63 times more volatile than Carasent ASA. It trades about 0.0 of its total potential returns per unit of risk. Carasent ASA is currently generating about 0.04 per unit of volatility. If you would invest 1,316 in Carasent ASA on August 28, 2024 and sell it today you would earn a total of 794.00 from holding Carasent ASA or generate 60.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Group ASA vs. Carasent ASA
Performance |
| Timeline |
| Hunter Group ASA |
| Carasent ASA |
Hunter Group and Carasent ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Group and Carasent ASA
The main advantage of trading using opposite Hunter Group and Carasent ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Group position performs unexpectedly, Carasent ASA 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 Carasent ASA will offset losses from the drop in Carasent ASA's long position.| Hunter Group vs. FLEX LNG | Hunter Group vs. Elkem ASA | Hunter Group vs. DNB NOR KAPFORV | Hunter Group vs. Integrated Wind Solutions |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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