Correlation Between Northern Lion and Hudson Technologies
Can any of the company-specific risk be diversified away by investing in both Northern Lion and Hudson Technologies 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 Northern Lion and Hudson Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lion Gold and Hudson Technologies, you can compare the effects of market volatilities on Northern Lion and Hudson Technologies 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 Northern Lion with a short position of Hudson Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lion and Hudson Technologies.
Diversification Opportunities for Northern Lion and Hudson Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lion Gold and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies and Northern Lion 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 Northern Lion Gold are associated (or correlated) with Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of Northern Lion i.e., Northern Lion and Hudson Technologies go up and down completely randomly.
Pair Corralation between Northern Lion and Hudson Technologies
If you would invest 10.00 in Northern Lion Gold on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Northern Lion Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Northern Lion Gold vs. Hudson Technologies
Performance |
| Timeline |
| Northern Lion Gold |
| Hudson Technologies |
Northern Lion and Hudson Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lion and Hudson Technologies
The main advantage of trading using opposite Northern Lion and Hudson Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lion position performs unexpectedly, Hudson Technologies 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 Hudson Technologies will offset losses from the drop in Hudson Technologies' long position.| Northern Lion vs. NH Foods Ltd | Northern Lion vs. FitLife Brands, Common | Northern Lion vs. AMCON Distributing | Northern Lion vs. IPG Photonics |
| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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