Correlation Between Raketech Group and HAKI Safety
Can any of the company-specific risk be diversified away by investing in both Raketech Group and HAKI Safety 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 Raketech Group and HAKI Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raketech Group Holding and HAKI Safety A, you can compare the effects of market volatilities on Raketech Group and HAKI Safety 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 Raketech Group with a short position of HAKI Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raketech Group and HAKI Safety.
Diversification Opportunities for Raketech Group and HAKI Safety
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raketech and HAKI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Raketech Group Holding and HAKI Safety A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKI Safety A and Raketech 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 Raketech Group Holding are associated (or correlated) with HAKI Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKI Safety A has no effect on the direction of Raketech Group i.e., Raketech Group and HAKI Safety go up and down completely randomly.
Pair Corralation between Raketech Group and HAKI Safety
Assuming the 90 days trading horizon Raketech Group Holding is expected to under-perform the HAKI Safety. In addition to that, Raketech Group is 1.54 times more volatile than HAKI Safety A. It trades about -0.25 of its total potential returns per unit of risk. HAKI Safety A is currently generating about 0.05 per unit of volatility. If you would invest 2,700 in HAKI Safety A on September 12, 2024 and sell it today you would earn a total of 80.00 from holding HAKI Safety A or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raketech Group Holding vs. HAKI Safety A
Performance |
| Timeline |
| Raketech Group Holding |
| HAKI Safety A |
Raketech Group and HAKI Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raketech Group and HAKI Safety
The main advantage of trading using opposite Raketech Group and HAKI Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raketech Group position performs unexpectedly, HAKI Safety 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 HAKI Safety will offset losses from the drop in HAKI Safety's long position.| Raketech Group vs. Catena Media plc | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC | Raketech Group vs. KABE Group AB |
| HAKI Safety vs. Arion banki hf | HAKI Safety vs. Invisio Communications AB | HAKI Safety vs. Arctic Blue Beverages | HAKI Safety vs. Swedbank AB |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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