Correlation Between Xplora Technologies and Hermana Holding
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies and Hermana Holding 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 Xplora Technologies and Hermana Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xplora Technologies As and Hermana Holding ASA, you can compare the effects of market volatilities on Xplora Technologies and Hermana Holding 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 Xplora Technologies with a short position of Hermana Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Hermana Holding.
Diversification Opportunities for Xplora Technologies and Hermana Holding
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xplora and Hermana is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As and Hermana Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hermana Holding ASA and Xplora Technologies 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 Xplora Technologies As are associated (or correlated) with Hermana Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hermana Holding ASA has no effect on the direction of Xplora Technologies i.e., Xplora Technologies and Hermana Holding go up and down completely randomly.
Pair Corralation between Xplora Technologies and Hermana Holding
Assuming the 90 days trading horizon Xplora Technologies As is expected to generate 1.5 times more return on investment than Hermana Holding. However, Xplora Technologies is 1.5 times more volatile than Hermana Holding ASA. It trades about 0.1 of its potential returns per unit of risk. Hermana Holding ASA is currently generating about 0.14 per unit of risk. If you would invest 3,000 in Xplora Technologies As on October 20, 2024 and sell it today you would earn a total of 150.00 from holding Xplora Technologies As or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xplora Technologies As vs. Hermana Holding ASA
Performance |
| Timeline |
| Xplora Technologies |
| Hermana Holding ASA |
Xplora Technologies and Hermana Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and Hermana Holding
The main advantage of trading using opposite Xplora Technologies and Hermana Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies position performs unexpectedly, Hermana Holding 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 Hermana Holding will offset losses from the drop in Hermana Holding's long position.| Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech As |
| Hermana Holding vs. Equinor ASA | Hermana Holding vs. DnB ASA | Hermana Holding vs. Aker BP ASA | Hermana Holding vs. Telenor 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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