Correlation Between Hemisphere Energy and Air Transport
Can any of the company-specific risk be diversified away by investing in both Hemisphere Energy and Air Transport 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 Hemisphere Energy and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hemisphere Energy Corp and Air Transport Services, you can compare the effects of market volatilities on Hemisphere Energy and Air Transport 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 Hemisphere Energy with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hemisphere Energy and Air Transport.
Diversification Opportunities for Hemisphere Energy and Air Transport
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hemisphere and Air is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hemisphere Energy Corp and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and Hemisphere Energy 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 Hemisphere Energy Corp are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Hemisphere Energy i.e., Hemisphere Energy and Air Transport go up and down completely randomly.
Pair Corralation between Hemisphere Energy and Air Transport
Assuming the 90 days trading horizon Hemisphere Energy Corp is expected to generate 0.63 times more return on investment than Air Transport. However, Hemisphere Energy Corp is 1.59 times less risky than Air Transport. It trades about 0.07 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.01 per unit of risk. If you would invest 71.00 in Hemisphere Energy Corp on November 6, 2024 and sell it today you would earn a total of 49.00 from holding Hemisphere Energy Corp or generate 69.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hemisphere Energy Corp vs. Air Transport Services
Performance |
| Timeline |
| Hemisphere Energy Corp |
| Air Transport Services |
Hemisphere Energy and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hemisphere Energy and Air Transport
The main advantage of trading using opposite Hemisphere Energy and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hemisphere Energy position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Hemisphere Energy vs. MUTUIONLINE | Hemisphere Energy vs. Ross Stores | Hemisphere Energy vs. SALESFORCE INC CDR | Hemisphere Energy vs. MARKET VECTR RETAIL |
| Air Transport vs. Planet Fitness | Air Transport vs. CHINA EDUCATION GROUP | Air Transport vs. Cardinal Health | Air Transport vs. Siemens Healthineers AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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