Correlation Between GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY

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

By analyzing existing cross correlation between GRUPUL INDUSTRIAL ELECTROCONTACT and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY 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 GRUPUL INDUSTRIAL with a short position of IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY.

Diversification Opportunities for GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY

-0.12

Correlation Coefficient

GRUPUL INDUSTRIAL  IHUNT TECHNOLOGY

Good diversification

The 3 months correlation between GRUPUL and IHUNT is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GRUPUL INDUSTRIAL ELECTROCONTA and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT and GRUPUL INDUSTRIAL 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 GRUPUL INDUSTRIAL ELECTROCONTACT are associated (or correlated) with IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of GRUPUL INDUSTRIAL i.e., GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY go up and down completely randomly.

Pair Corralation between GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY

Assuming the 90 days trading horizon GRUPUL INDUSTRIAL ELECTROCONTACT is expected to generate 2.2 times more return on investment than IHUNT TECHNOLOGY. However, GRUPUL INDUSTRIAL is 2.2 times more volatile than IHUNT TECHNOLOGY IMPORT EXPORT. It trades about 0.08 of its potential returns per unit of risk. IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about 0.03 per unit of risk. If you would invest  4.45  in GRUPUL INDUSTRIAL ELECTROCONTACT on December 30, 2024 and sell it today you would earn a total of  0.95  from holding GRUPUL INDUSTRIAL ELECTROCONTACT or generate 21.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

GRUPUL INDUSTRIAL ELECTROCONTA  vs.  IHUNT TECHNOLOGY IMPORT EXPORT

GRUPUL INDUSTRIAL

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GRUPUL INDUSTRIAL ELECTROCONTACT are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, GRUPUL INDUSTRIAL displayed solid returns over the last few months and may actually be approaching a breakup point.

IHUNT TECHNOLOGY IMPORT

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IHUNT TECHNOLOGY IMPORT EXPORT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, IHUNT TECHNOLOGY is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with GRUPUL INDUSTRIAL and IHUNT TECHNOLOGY

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

The idea behind GRUPUL INDUSTRIAL ELECTROCONTACT and IHUNT TECHNOLOGY IMPORT EXPORT 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.

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.