Correlation Between STRA Hannoversche and HK Electric
Can any of the company-specific risk be diversified away by investing in both STRA Hannoversche and HK Electric 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 STRA Hannoversche and HK Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRA Hannoversche Verkehrsbetriebe and HK Electric Investments, you can compare the effects of market volatilities on STRA Hannoversche and HK Electric 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 STRA Hannoversche with a short position of HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRA Hannoversche and HK Electric.
Diversification Opportunities for STRA Hannoversche and HK Electric
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STRA and HKT is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding STRA Hannoversche Verkehrsbetr and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments and STRA Hannoversche 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 STRA Hannoversche Verkehrsbetriebe are associated (or correlated) with HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of STRA Hannoversche i.e., STRA Hannoversche and HK Electric go up and down completely randomly.
Pair Corralation between STRA Hannoversche and HK Electric
Assuming the 90 days horizon STRA Hannoversche Verkehrsbetriebe is expected to under-perform the HK Electric. But the stock apears to be less risky and, when comparing its historical volatility, STRA Hannoversche Verkehrsbetriebe is 1.05 times less risky than HK Electric. The stock trades about -0.21 of its potential returns per unit of risk. The HK Electric Investments is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 63.00 in HK Electric Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding HK Electric Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STRA Hannoversche Verkehrsbetr vs. HK Electric Investments
Performance |
| Timeline |
| STRA Hannoversche |
| HK Electric Investments |
STRA Hannoversche and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRA Hannoversche and HK Electric
The main advantage of trading using opposite STRA Hannoversche and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRA Hannoversche position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| STRA Hannoversche vs. MUTUIONLINE | STRA Hannoversche vs. ON SEMICONDUCTOR | STRA Hannoversche vs. NXP Semiconductors NV | STRA Hannoversche vs. TOREX SEMICONDUCTOR LTD |
| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |