Correlation Between Smurfit Kappa and HANNRUECKVSE ADR
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and HANNRUECKVSE ADR 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 Smurfit Kappa and HANNRUECKVSE ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and HANNRUECKVSE ADR 12ON, you can compare the effects of market volatilities on Smurfit Kappa and HANNRUECKVSE ADR 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 Smurfit Kappa with a short position of HANNRUECKVSE ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and HANNRUECKVSE ADR.
Diversification Opportunities for Smurfit Kappa and HANNRUECKVSE ADR
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Smurfit and HANNRUECKVSE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and HANNRUECKVSE ADR 12ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANNRUECKVSE ADR 12ON and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with HANNRUECKVSE ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANNRUECKVSE ADR 12ON has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and HANNRUECKVSE ADR go up and down completely randomly.
Pair Corralation between Smurfit Kappa and HANNRUECKVSE ADR
Assuming the 90 days horizon Smurfit Kappa Group is expected to generate 2.31 times more return on investment than HANNRUECKVSE ADR. However, Smurfit Kappa is 2.31 times more volatile than HANNRUECKVSE ADR 12ON. It trades about 0.16 of its potential returns per unit of risk. HANNRUECKVSE ADR 12ON is currently generating about -0.03 per unit of risk. If you would invest 4,432 in Smurfit Kappa Group on August 29, 2024 and sell it today you would earn a total of 948.00 from holding Smurfit Kappa Group or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Smurfit Kappa Group vs. HANNRUECKVSE ADR 12ON
Performance |
| Timeline |
| Smurfit Kappa Group |
| HANNRUECKVSE ADR 12ON |
Smurfit Kappa and HANNRUECKVSE ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and HANNRUECKVSE ADR
The main advantage of trading using opposite Smurfit Kappa and HANNRUECKVSE ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, HANNRUECKVSE ADR 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 HANNRUECKVSE ADR will offset losses from the drop in HANNRUECKVSE ADR's long position.| Smurfit Kappa vs. Amcor plc | Smurfit Kappa vs. Packaging of | Smurfit Kappa vs. CCL Industries | Smurfit Kappa vs. AptarGroup |
| HANNRUECKVSE ADR vs. Reinsurance Group of | HANNRUECKVSE ADR vs. Superior Plus Corp | HANNRUECKVSE ADR vs. NMI Holdings | HANNRUECKVSE ADR vs. SIVERS SEMICONDUCTORS 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |