Correlation Between CreditRiskMonitorCom and Halitron

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

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

Diversification Opportunities for CreditRiskMonitorCom and Halitron

0.0

Correlation Coefficient

CreditRiskMonitorCom  Halitron

Pay attention - limited upside

The 3 months correlation between CreditRiskMonitorCom and Halitron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CreditRiskMonitorCom and Halitron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halitron and CreditRiskMonitorCom 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 CreditRiskMonitorCom are associated (or correlated) with Halitron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halitron has no effect on the direction of CreditRiskMonitorCom i.e., CreditRiskMonitorCom and Halitron go up and down completely randomly.

Pair Corralation between CreditRiskMonitorCom and Halitron

Given the investment horizon of 90 days CreditRiskMonitorCom is expected to generate 0.31 times more return on investment than Halitron. However, CreditRiskMonitorCom is 3.19 times less risky than Halitron. It trades about 0.12 of its potential returns per unit of risk. Halitron is currently generating about -0.09 per unit of risk. If you would invest  210.00  in CreditRiskMonitorCom on September 25, 2024 and sell it today you would earn a total of  90.00  from holding CreditRiskMonitorCom or generate 42.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CreditRiskMonitorCom  vs.  Halitron

CreditRiskMonitorCom

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CreditRiskMonitorCom are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile primary indicators, CreditRiskMonitorCom showed solid returns over the last few months and may actually be approaching a breakup point.

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CreditRiskMonitorCom and Halitron

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

The idea behind CreditRiskMonitorCom and Halitron 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..