Correlation Between HusCompagniet and GN Store
Can any of the company-specific risk be diversified away by investing in both HusCompagniet and GN Store 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 HusCompagniet and GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HusCompagniet AS and GN Store Nord, you can compare the effects of market volatilities on HusCompagniet and GN Store 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 HusCompagniet with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of HusCompagniet and GN Store.
Diversification Opportunities for HusCompagniet and GN Store
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HusCompagniet and GN Store is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding HusCompagniet AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and HusCompagniet 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 HusCompagniet AS are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of HusCompagniet i.e., HusCompagniet and GN Store go up and down completely randomly.
Pair Corralation between HusCompagniet and GN Store
Assuming the 90 days trading horizon HusCompagniet AS is expected to under-perform the GN Store. In addition to that, HusCompagniet is 1.12 times more volatile than GN Store Nord. It trades about -0.15 of its total potential returns per unit of risk. GN Store Nord is currently generating about 0.03 per unit of volatility. If you would invest 13,335 in GN Store Nord on September 1, 2024 and sell it today you would earn a total of 165.00 from holding GN Store Nord or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HusCompagniet AS vs. GN Store Nord
Performance |
| Timeline |
| HusCompagniet AS |
| GN Store Nord |
HusCompagniet and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HusCompagniet and GN Store
The main advantage of trading using opposite HusCompagniet and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HusCompagniet position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| HusCompagniet vs. Matas AS | HusCompagniet vs. Netcompany Group AS | HusCompagniet vs. FLSmidth Co | HusCompagniet vs. GN Store Nord |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |