Correlation Between Hawesko Holding and FUTURE GAMING

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

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

Diversification Opportunities for Hawesko Holding and FUTURE GAMING

0.0

Correlation Coefficient

Hawesko Holding  FUTURE GAMING

Pay attention - limited upside

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

Pair Corralation between Hawesko Holding and FUTURE GAMING

If you would invest (100.00) in Hawesko Holding AG on October 22, 2024 and sell it today you would earn a total of  100.00  from holding Hawesko Holding AG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hawesko Holding AG  vs.  FUTURE GAMING GRP

Hawesko Holding AG

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Hawesko Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hawesko Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FUTURE GAMING GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FUTURE GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Hawesko Holding and FUTURE GAMING

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

The idea behind Hawesko Holding AG and FUTURE GAMING GRP 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.