Correlation Between K Fast and Hexatronic Group
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By analyzing existing cross correlation between K Fast Holding AB and Hexatronic Group AB, you can compare the effects of market volatilities on K Fast and Hexatronic Group 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 K Fast with a short position of Hexatronic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of K Fast and Hexatronic Group.
Diversification Opportunities for K Fast and Hexatronic Group
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KFAST-B and Hexatronic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding K Fast Holding AB and Hexatronic Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexatronic Group and K Fast 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 K Fast Holding AB are associated (or correlated) with Hexatronic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexatronic Group has no effect on the direction of K Fast i.e., K Fast and Hexatronic Group go up and down completely randomly.
Pair Corralation between K Fast and Hexatronic Group
Assuming the 90 days trading horizon K Fast Holding AB is expected to generate 1.05 times more return on investment than Hexatronic Group. However, K Fast is 1.05 times more volatile than Hexatronic Group AB. It trades about -0.17 of its potential returns per unit of risk. Hexatronic Group AB is currently generating about -0.3 per unit of risk. If you would invest 2,155 in K Fast Holding AB on September 2, 2024 and sell it today you would lose (185.00) from holding K Fast Holding AB or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K Fast Holding AB vs. Hexatronic Group AB
Performance |
| Timeline |
| K Fast Holding |
| Hexatronic Group |
K Fast and Hexatronic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K Fast and Hexatronic Group
The main advantage of trading using opposite K Fast and Hexatronic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K Fast position performs unexpectedly, Hexatronic Group 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 Hexatronic Group will offset losses from the drop in Hexatronic Group's long position.| K Fast vs. Fastighets AB Balder | K Fast vs. Fabege AB | K Fast vs. Wihlborgs Fastigheter AB | K Fast vs. Castellum AB |
| Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Embracer Group AB | Hexatronic Group vs. Evolution AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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