Correlation Between Hydract AS and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Hydract AS and Tryg AS 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 Hydract AS and Tryg AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydract AS and Tryg AS, you can compare the effects of market volatilities on Hydract AS and Tryg AS 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 Hydract AS with a short position of Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydract AS and Tryg AS.
Diversification Opportunities for Hydract AS and Tryg AS
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hydract and Tryg is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hydract AS and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg AS and Hydract AS 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 Hydract AS are associated (or correlated) with Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Hydract AS i.e., Hydract AS and Tryg AS go up and down completely randomly.
Pair Corralation between Hydract AS and Tryg AS
Assuming the 90 days trading horizon Hydract AS is expected to generate 12.12 times more return on investment than Tryg AS. However, Hydract AS is 12.12 times more volatile than Tryg AS. It trades about 0.12 of its potential returns per unit of risk. Tryg AS is currently generating about 0.23 per unit of risk. If you would invest 49.00 in Hydract AS on October 22, 2024 and sell it today you would earn a total of 6.00 from holding Hydract AS or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydract AS vs. Tryg AS
Performance |
| Timeline |
| Hydract AS |
| Tryg AS |
Hydract AS and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydract AS and Tryg AS
The main advantage of trading using opposite Hydract AS and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydract AS position performs unexpectedly, Tryg AS 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 Tryg AS will offset losses from the drop in Tryg AS's long position.| Hydract AS vs. Nordinvestments AS | Hydract AS vs. Jyske Bank AS | Hydract AS vs. Danske Andelskassers Bank | Hydract AS vs. Djurslands Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |