Correlation Between Vow ASA and Hexagon Composites
Can any of the company-specific risk be diversified away by investing in both Vow ASA and Hexagon Composites 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 Vow ASA and Hexagon Composites into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow ASA and Hexagon Composites ASA, you can compare the effects of market volatilities on Vow ASA and Hexagon Composites 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 Vow ASA with a short position of Hexagon Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and Hexagon Composites.
Diversification Opportunities for Vow ASA and Hexagon Composites
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vow and Hexagon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Hexagon Composites ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Composites ASA and Vow ASA 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 Vow ASA are associated (or correlated) with Hexagon Composites. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Composites ASA has no effect on the direction of Vow ASA i.e., Vow ASA and Hexagon Composites go up and down completely randomly.
Pair Corralation between Vow ASA and Hexagon Composites
Assuming the 90 days trading horizon Vow ASA is expected to generate 1.26 times more return on investment than Hexagon Composites. However, Vow ASA is 1.26 times more volatile than Hexagon Composites ASA. It trades about -0.03 of its potential returns per unit of risk. Hexagon Composites ASA is currently generating about -0.08 per unit of risk. If you would invest 180.00 in Vow ASA on October 20, 2024 and sell it today you would lose (5.00) from holding Vow ASA or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow ASA vs. Hexagon Composites ASA
Performance |
| Timeline |
| Vow ASA |
| Hexagon Composites ASA |
Vow ASA and Hexagon Composites Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and Hexagon Composites
The main advantage of trading using opposite Vow ASA and Hexagon Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, Hexagon Composites 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 Hexagon Composites will offset losses from the drop in Hexagon Composites' long position.| Vow ASA vs. Hexagon Composites ASA | Vow ASA vs. Vow Green Metals | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Aker Carbon Capture |
| Hexagon Composites vs. Hexagon Purus As | Hexagon Composites vs. Nel ASA | Hexagon Composites vs. Powercell Sweden | Hexagon Composites vs. Tomra Systems ASA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |