Correlation Between HAGA SA and Inepar SA

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

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

Diversification Opportunities for HAGA SA and Inepar SA

-0.81

Correlation Coefficient

HAGA SA  Inepar SA

Pay attention - limited upside

The 3 months correlation between HAGA and Inepar is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Inepar SA Indstria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inepar SA Indstria and HAGA SA 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 HAGA SA Indstria are associated (or correlated) with Inepar SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inepar SA Indstria has no effect on the direction of HAGA SA i.e., HAGA SA and Inepar SA go up and down completely randomly.

Pair Corralation between HAGA SA and Inepar SA

Assuming the 90 days trading horizon HAGA SA Indstria is expected to generate 0.54 times more return on investment than Inepar SA. However, HAGA SA Indstria is 1.85 times less risky than Inepar SA. It trades about 0.1 of its potential returns per unit of risk. Inepar SA Indstria is currently generating about -0.06 per unit of risk. If you would invest  119.00  in HAGA SA Indstria on September 13, 2024 and sell it today you would earn a total of  13.00  from holding HAGA SA Indstria or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

HAGA SA Indstria  vs.  Inepar SA Indstria

HAGA SA Indstria

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HAGA SA Indstria are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, HAGA SA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Inepar SA Indstria

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inepar SA Indstria has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Preferred Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with HAGA SA and Inepar SA

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

The idea behind HAGA SA Indstria and Inepar SA Indstria 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.