Correlation Between METTLER TOLEDO and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both METTLER TOLEDO and HYBRIGENICS 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 METTLER TOLEDO and HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METTLER TOLEDO INTL and HYBRIGENICS A , you can compare the effects of market volatilities on METTLER TOLEDO and HYBRIGENICS 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 METTLER TOLEDO with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of METTLER TOLEDO and HYBRIGENICS.
Diversification Opportunities for METTLER TOLEDO and HYBRIGENICS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between METTLER and HYBRIGENICS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding METTLER TOLEDO INTL and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and METTLER TOLEDO 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 METTLER TOLEDO INTL are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of METTLER TOLEDO i.e., METTLER TOLEDO and HYBRIGENICS go up and down completely randomly.
Pair Corralation between METTLER TOLEDO and HYBRIGENICS
Assuming the 90 days trading horizon METTLER TOLEDO INTL is expected to generate 0.35 times more return on investment than HYBRIGENICS. However, METTLER TOLEDO INTL is 2.83 times less risky than HYBRIGENICS. It trades about -0.02 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about -0.17 per unit of risk. If you would invest 119,800 in METTLER TOLEDO INTL on August 31, 2024 and sell it today you would lose (2,150) from holding METTLER TOLEDO INTL or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
METTLER TOLEDO INTL vs. HYBRIGENICS A
Performance |
| Timeline |
| METTLER TOLEDO INTL |
| HYBRIGENICS A |
METTLER TOLEDO and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METTLER TOLEDO and HYBRIGENICS
The main advantage of trading using opposite METTLER TOLEDO and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METTLER TOLEDO position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| METTLER TOLEDO vs. SIVERS SEMICONDUCTORS AB | METTLER TOLEDO vs. Darden Restaurants | METTLER TOLEDO vs. Reliance Steel Aluminum | METTLER TOLEDO vs. Q2M Managementberatung AG |
| HYBRIGENICS vs. PLAY2CHILL SA ZY | HYBRIGENICS vs. LG Display Co | HYBRIGENICS vs. Ming Le Sports | HYBRIGENICS vs. PLAYTIKA HOLDING DL 01 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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