Correlation Between Hyloris Developmentsen and Exmar NV
Can any of the company-specific risk be diversified away by investing in both Hyloris Developmentsen and Exmar NV 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 Hyloris Developmentsen and Exmar NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyloris Developmentsen Sa and Exmar NV, you can compare the effects of market volatilities on Hyloris Developmentsen and Exmar NV 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 Hyloris Developmentsen with a short position of Exmar NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyloris Developmentsen and Exmar NV.
Diversification Opportunities for Hyloris Developmentsen and Exmar NV
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyloris and Exmar is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hyloris Developmentsen Sa and Exmar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exmar NV and Hyloris Developmentsen 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 Hyloris Developmentsen Sa are associated (or correlated) with Exmar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmar NV has no effect on the direction of Hyloris Developmentsen i.e., Hyloris Developmentsen and Exmar NV go up and down completely randomly.
Pair Corralation between Hyloris Developmentsen and Exmar NV
Assuming the 90 days trading horizon Hyloris Developmentsen Sa is expected to under-perform the Exmar NV. In addition to that, Hyloris Developmentsen is 1.97 times more volatile than Exmar NV. It trades about -0.01 of its total potential returns per unit of risk. Exmar NV is currently generating about 0.08 per unit of volatility. If you would invest 361.00 in Exmar NV on August 26, 2024 and sell it today you would earn a total of 446.00 from holding Exmar NV or generate 123.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyloris Developmentsen Sa vs. Exmar NV
Performance |
| Timeline |
| Hyloris Developmentsen |
| Exmar NV |
Hyloris Developmentsen and Exmar NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyloris Developmentsen and Exmar NV
The main advantage of trading using opposite Hyloris Developmentsen and Exmar NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyloris Developmentsen position performs unexpectedly, Exmar NV 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 Exmar NV will offset losses from the drop in Exmar NV's long position.| Hyloris Developmentsen vs. Biocartis Group NV | Hyloris Developmentsen vs. Argen X | Hyloris Developmentsen vs. Barco NV | Hyloris Developmentsen vs. Nyxoah |
| Exmar NV vs. EVS Broadcast Equipment | Exmar NV vs. NV Bekaert SA | Exmar NV vs. Tessenderlo | Exmar NV vs. Melexis 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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