Correlation Between HU Group and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both HU Group and Thermo Fisher 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 HU Group and Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HU Group Holdings and Thermo Fisher Scientific, you can compare the effects of market volatilities on HU Group and Thermo Fisher 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 HU Group with a short position of Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of HU Group and Thermo Fisher.
Diversification Opportunities for HU Group and Thermo Fisher
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MRCHF and Thermo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding HU Group Holdings and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific and HU Group 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 HU Group Holdings are associated (or correlated) with Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of HU Group i.e., HU Group and Thermo Fisher go up and down completely randomly.
Pair Corralation between HU Group and Thermo Fisher
If you would invest 1,597 in HU Group Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding HU Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
HU Group Holdings vs. Thermo Fisher Scientific
Performance |
| Timeline |
| HU Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Thermo Fisher Scientific |
HU Group and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HU Group and Thermo Fisher
The main advantage of trading using opposite HU Group and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HU Group position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.The idea behind HU Group Holdings and Thermo Fisher Scientific pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thermo Fisher vs. Agilent Technologies | Thermo Fisher vs. IDEXX Laboratories | Thermo Fisher vs. Illumina | Thermo Fisher vs. Waters |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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