Correlation Between HAN GINS and HAN GINS
Can any of the company-specific risk be diversified away by investing in both HAN GINS and HAN GINS 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 HAN GINS and HAN GINS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAN GINS Tech Megatrend and HAN GINS Indxx Healthcare, you can compare the effects of market volatilities on HAN GINS and HAN GINS 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 HAN GINS with a short position of HAN GINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAN GINS and HAN GINS.
Diversification Opportunities for HAN GINS and HAN GINS
Significant diversification
The 3 months correlation between HAN and HAN is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HAN GINS Tech Megatrend and HAN GINS Indxx Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAN GINS Indxx and HAN GINS 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 HAN GINS Tech Megatrend are associated (or correlated) with HAN GINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAN GINS Indxx has no effect on the direction of HAN GINS i.e., HAN GINS and HAN GINS go up and down completely randomly.
Pair Corralation between HAN GINS and HAN GINS
Assuming the 90 days trading horizon HAN GINS Tech Megatrend is expected to generate 1.37 times more return on investment than HAN GINS. However, HAN GINS is 1.37 times more volatile than HAN GINS Indxx Healthcare. It trades about 0.08 of its potential returns per unit of risk. HAN GINS Indxx Healthcare is currently generating about -0.01 per unit of risk. If you would invest 1,004 in HAN GINS Tech Megatrend on September 19, 2024 and sell it today you would earn a total of 493.00 from holding HAN GINS Tech Megatrend or generate 49.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAN GINS Tech Megatrend vs. HAN GINS Indxx Healthcare
Performance |
| Timeline |
| HAN GINS Tech |
| HAN GINS Indxx |
HAN GINS and HAN GINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAN GINS and HAN GINS
The main advantage of trading using opposite HAN GINS and HAN GINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAN GINS position performs unexpectedly, HAN GINS 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 HAN GINS will offset losses from the drop in HAN GINS's long position.| HAN GINS vs. Lyxor UCITS Japan | HAN GINS vs. Lyxor UCITS Japan | HAN GINS vs. Lyxor UCITS Stoxx | HAN GINS vs. Amundi CAC 40 |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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