Correlation Between HAL Trust and Sofina Socit
Can any of the company-specific risk be diversified away by investing in both HAL Trust and Sofina Socit 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 HAL Trust and Sofina Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAL Trust and Sofina Socit Anonyme, you can compare the effects of market volatilities on HAL Trust and Sofina Socit 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 HAL Trust with a short position of Sofina Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and Sofina Socit.
Diversification Opportunities for HAL Trust and Sofina Socit
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HAL and Sofina is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme and HAL Trust 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 HAL Trust are associated (or correlated) with Sofina Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of HAL Trust i.e., HAL Trust and Sofina Socit go up and down completely randomly.
Pair Corralation between HAL Trust and Sofina Socit
Assuming the 90 days trading horizon HAL Trust is expected to generate 1.71 times less return on investment than Sofina Socit. But when comparing it to its historical volatility, HAL Trust is 1.25 times less risky than Sofina Socit. It trades about 0.11 of its potential returns per unit of risk. Sofina Socit Anonyme is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 21,580 in Sofina Socit Anonyme on October 10, 2024 and sell it today you would earn a total of 640.00 from holding Sofina Socit Anonyme or generate 2.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
HAL Trust vs. Sofina Socit Anonyme
Performance |
Timeline |
HAL Trust |
Sofina Socit Anonyme |
HAL Trust and Sofina Socit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HAL Trust and Sofina Socit
The main advantage of trading using opposite HAL Trust and Sofina Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust position performs unexpectedly, Sofina Socit 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 Sofina Socit will offset losses from the drop in Sofina Socit's long position.HAL Trust vs. Ackermans Van Haaren | HAL Trust vs. Koninklijke Vopak NV | HAL Trust vs. Groep Brussel Lambert | HAL Trust vs. Sofina Socit Anonyme |
Sofina Socit vs. Retail Estates | Sofina Socit vs. Home Invest Belgium | Sofina Socit vs. EVS Broadcast Equipment | Sofina Socit vs. Ion Beam Applications |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |