Correlation Between Hexagon AB and II VI
Can any of the company-specific risk be diversified away by investing in both Hexagon AB and II VI 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 Hexagon AB and II VI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexagon AB ADR and II VI Incorporated, you can compare the effects of market volatilities on Hexagon AB and II VI 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 Hexagon AB with a short position of II VI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon AB and II VI.
Diversification Opportunities for Hexagon AB and II VI
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hexagon and IIVIP is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon AB ADR and II VI Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II VI and Hexagon AB 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 Hexagon AB ADR are associated (or correlated) with II VI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II VI has no effect on the direction of Hexagon AB i.e., Hexagon AB and II VI go up and down completely randomly.
Pair Corralation between Hexagon AB and II VI
If you would invest 18,751 in II VI Incorporated on August 28, 2024 and sell it today you would earn a total of 0.00 from holding II VI Incorporated or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hexagon AB ADR vs. II VI Incorporated
Performance |
| Timeline |
| Hexagon AB ADR |
| II VI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hexagon AB and II VI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexagon AB and II VI
The main advantage of trading using opposite Hexagon AB and II VI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexagon AB position performs unexpectedly, II VI 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 II VI will offset losses from the drop in II VI's long position.| Hexagon AB vs. Garmin | Hexagon AB vs. Keysight Technologies | Hexagon AB vs. Fortive Corp | Hexagon AB vs. Teledyne Technologies Incorporated |
| II VI vs. United Fire Group | II VI vs. Molson Coors Brewing | II VI vs. Anheuser Busch Inbev | II VI vs. NI Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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