Correlation Between NAT ABSOLUTE and AddTech Hub
Can any of the company-specific risk be diversified away by investing in both NAT ABSOLUTE and AddTech Hub 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 NAT ABSOLUTE and AddTech Hub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAT ABSOLUTE TECHNOLOGIES and AddTech Hub Public, you can compare the effects of market volatilities on NAT ABSOLUTE and AddTech Hub 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 NAT ABSOLUTE with a short position of AddTech Hub. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAT ABSOLUTE and AddTech Hub.
Diversification Opportunities for NAT ABSOLUTE and AddTech Hub
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NAT and AddTech is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NAT ABSOLUTE TECHNOLOGIES and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public and NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES are associated (or correlated) with AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of NAT ABSOLUTE i.e., NAT ABSOLUTE and AddTech Hub go up and down completely randomly.
Pair Corralation between NAT ABSOLUTE and AddTech Hub
Assuming the 90 days trading horizon NAT ABSOLUTE TECHNOLOGIES is expected to under-perform the AddTech Hub. But the stock apears to be less risky and, when comparing its historical volatility, NAT ABSOLUTE TECHNOLOGIES is 1.11 times less risky than AddTech Hub. The stock trades about -0.49 of its potential returns per unit of risk. The AddTech Hub Public is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 473.00 in AddTech Hub Public on August 30, 2024 and sell it today you would lose (15.00) from holding AddTech Hub Public or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NAT ABSOLUTE TECHNOLOGIES vs. AddTech Hub Public
Performance |
| Timeline |
| NAT ABSOLUTE TECHNOLOGIES |
| AddTech Hub Public |
NAT ABSOLUTE and AddTech Hub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAT ABSOLUTE and AddTech Hub
The main advantage of trading using opposite NAT ABSOLUTE and AddTech Hub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAT ABSOLUTE position performs unexpectedly, AddTech Hub 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 AddTech Hub will offset losses from the drop in AddTech Hub's long position.| NAT ABSOLUTE vs. Delta Electronics Public | NAT ABSOLUTE vs. Delta Electronics Public | NAT ABSOLUTE vs. Airports of Thailand | NAT ABSOLUTE vs. Airports of Thailand |
| AddTech Hub vs. Forth Public | AddTech Hub vs. After You Public | AddTech Hub vs. The Erawan Group | AddTech Hub vs. Airports of Thailand |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |