Correlation Between IVF Hartmann and Hypothekarbank Lenzburg
Can any of the company-specific risk be diversified away by investing in both IVF Hartmann and Hypothekarbank Lenzburg 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 IVF Hartmann and Hypothekarbank Lenzburg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IVF Hartmann Holding and Hypothekarbank Lenzburg AG, you can compare the effects of market volatilities on IVF Hartmann and Hypothekarbank Lenzburg 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 IVF Hartmann with a short position of Hypothekarbank Lenzburg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IVF Hartmann and Hypothekarbank Lenzburg.
Diversification Opportunities for IVF Hartmann and Hypothekarbank Lenzburg
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IVF and Hypothekarbank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding IVF Hartmann Holding and Hypothekarbank Lenzburg AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypothekarbank Lenzburg and IVF Hartmann 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 IVF Hartmann Holding are associated (or correlated) with Hypothekarbank Lenzburg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypothekarbank Lenzburg has no effect on the direction of IVF Hartmann i.e., IVF Hartmann and Hypothekarbank Lenzburg go up and down completely randomly.
Pair Corralation between IVF Hartmann and Hypothekarbank Lenzburg
Assuming the 90 days trading horizon IVF Hartmann is expected to generate 1.78 times less return on investment than Hypothekarbank Lenzburg. In addition to that, IVF Hartmann is 2.1 times more volatile than Hypothekarbank Lenzburg AG. It trades about 0.08 of its total potential returns per unit of risk. Hypothekarbank Lenzburg AG is currently generating about 0.31 per unit of volatility. If you would invest 398,000 in Hypothekarbank Lenzburg AG on October 24, 2024 and sell it today you would earn a total of 10,000 from holding Hypothekarbank Lenzburg AG or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IVF Hartmann Holding vs. Hypothekarbank Lenzburg AG
Performance |
| Timeline |
| IVF Hartmann Holding |
| Hypothekarbank Lenzburg |
IVF Hartmann and Hypothekarbank Lenzburg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IVF Hartmann and Hypothekarbank Lenzburg
The main advantage of trading using opposite IVF Hartmann and Hypothekarbank Lenzburg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IVF Hartmann position performs unexpectedly, Hypothekarbank Lenzburg 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 Hypothekarbank Lenzburg will offset losses from the drop in Hypothekarbank Lenzburg's long position.| IVF Hartmann vs. Thurgauer Kantonalbank | IVF Hartmann vs. HBM Healthcare Investments | IVF Hartmann vs. Zuger Kantonalbank | IVF Hartmann vs. VP Bank AG |
| Hypothekarbank Lenzburg vs. Luzerner Kantonalbank AG | Hypothekarbank Lenzburg vs. Graubuendner Kantonalbank | Hypothekarbank Lenzburg vs. CPH Chemie und | Hypothekarbank Lenzburg vs. Berner Kantonalbank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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