Correlation Between Aubay Socit and Hitechpros

Can any of the company-specific risk be diversified away by investing in both Aubay Socit and Hitechpros 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 Aubay Socit and Hitechpros into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aubay Socit Anonyme and Hitechpros, you can compare the effects of market volatilities on Aubay Socit and Hitechpros 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 Aubay Socit with a short position of Hitechpros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aubay Socit and Hitechpros.

Diversification Opportunities for Aubay Socit and Hitechpros

-0.45

Correlation Coefficient

Aubay Socit  Hitechpros

Very good diversification

The 3 months correlation between Aubay and Hitechpros is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aubay Socit Anonyme and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros and Aubay Socit 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 Aubay Socit Anonyme are associated (or correlated) with Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of Aubay Socit i.e., Aubay Socit and Hitechpros go up and down completely randomly.

Pair Corralation between Aubay Socit and Hitechpros

Assuming the 90 days trading horizon Aubay Socit Anonyme is expected to generate 0.42 times more return on investment than Hitechpros. However, Aubay Socit Anonyme is 2.39 times less risky than Hitechpros. It trades about 0.1 of its potential returns per unit of risk. Hitechpros is currently generating about 0.02 per unit of risk. If you would invest  2,985  in Aubay Socit Anonyme on September 24, 2024 and sell it today you would earn a total of  1,465  from holding Aubay Socit Anonyme or generate 49.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aubay Socit Anonyme  vs.  Hitechpros

Aubay Socit Anonyme

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aubay Socit Anonyme are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Aubay Socit may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hitechpros

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hitechpros has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hitechpros is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aubay Socit and Hitechpros

The main advantage of trading using opposite Aubay Socit and Hitechpros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aubay Socit position performs unexpectedly, Hitechpros 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 Hitechpros will offset losses from the drop in Hitechpros' long position.

The idea behind Aubay Socit Anonyme and Hitechpros pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.