Correlation Between Hydratec Industries and IShares AEX
Can any of the company-specific risk be diversified away by investing in both Hydratec Industries and IShares AEX 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 Hydratec Industries and IShares AEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydratec Industries NV and iShares AEX UCITS, you can compare the effects of market volatilities on Hydratec Industries and IShares AEX 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 Hydratec Industries with a short position of IShares AEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydratec Industries and IShares AEX.
Diversification Opportunities for Hydratec Industries and IShares AEX
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hydratec and IShares is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hydratec Industries NV and iShares AEX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares AEX UCITS and Hydratec Industries 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 Hydratec Industries NV are associated (or correlated) with IShares AEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares AEX UCITS has no effect on the direction of Hydratec Industries i.e., Hydratec Industries and IShares AEX go up and down completely randomly.
Pair Corralation between Hydratec Industries and IShares AEX
Assuming the 90 days trading horizon Hydratec Industries NV is expected to generate 0.69 times more return on investment than IShares AEX. However, Hydratec Industries NV is 1.44 times less risky than IShares AEX. It trades about 0.22 of its potential returns per unit of risk. iShares AEX UCITS is currently generating about 0.07 per unit of risk. If you would invest 15,600 in Hydratec Industries NV on September 4, 2024 and sell it today you would earn a total of 400.00 from holding Hydratec Industries NV or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hydratec Industries NV vs. iShares AEX UCITS
Performance |
| Timeline |
| Hydratec Industries |
| iShares AEX UCITS |
Hydratec Industries and IShares AEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydratec Industries and IShares AEX
The main advantage of trading using opposite Hydratec Industries and IShares AEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydratec Industries position performs unexpectedly, IShares AEX 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 IShares AEX will offset losses from the drop in IShares AEX's long position.| Hydratec Industries vs. Wolters Kluwer NV | Hydratec Industries vs. Aalberts Industries NV | Hydratec Industries vs. ASM International NV | Hydratec Industries vs. ASR Nederland NV |
| IShares AEX vs. Vanguard FTSE Developed | IShares AEX vs. HSBC MSCI Japan | IShares AEX vs. iShares II Public | IShares AEX vs. Hydratec Industries NV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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