Correlation Between HEXINDO ADIPERKASA and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA and Thyssenkrupp 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 HEXINDO ADIPERKASA and Thyssenkrupp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and thyssenkrupp AG, you can compare the effects of market volatilities on HEXINDO ADIPERKASA and Thyssenkrupp 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 HEXINDO ADIPERKASA with a short position of Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and Thyssenkrupp.
Diversification Opportunities for HEXINDO ADIPERKASA and Thyssenkrupp
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HEXINDO and Thyssenkrupp is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA are associated (or correlated) with Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and Thyssenkrupp go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and Thyssenkrupp
Assuming the 90 days trading horizon HEXINDO ADIPERKASA is expected to under-perform the Thyssenkrupp. But the stock apears to be less risky and, when comparing its historical volatility, HEXINDO ADIPERKASA is 2.17 times less risky than Thyssenkrupp. The stock trades about -0.35 of its potential returns per unit of risk. The thyssenkrupp AG is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 324.00 in thyssenkrupp AG on August 31, 2024 and sell it today you would earn a total of 66.00 from holding thyssenkrupp AG or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. thyssenkrupp AG
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
| thyssenkrupp AG |
HEXINDO ADIPERKASA and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and Thyssenkrupp
The main advantage of trading using opposite HEXINDO ADIPERKASA and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| HEXINDO ADIPERKASA vs. SIVERS SEMICONDUCTORS AB | HEXINDO ADIPERKASA vs. Darden Restaurants | HEXINDO ADIPERKASA vs. Reliance Steel Aluminum | HEXINDO ADIPERKASA vs. Q2M Managementberatung AG |
| Thyssenkrupp vs. SIVERS SEMICONDUCTORS AB | Thyssenkrupp vs. Darden Restaurants | Thyssenkrupp vs. Reliance Steel Aluminum | Thyssenkrupp vs. Q2M Managementberatung AG |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |