Correlation Between Hawesko Holding and TITANIUM TRANSPORTGROUP

Can any of the company-specific risk be diversified away by investing in both Hawesko Holding and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP, you can compare the effects of market volatilities on Hawesko Holding and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawesko Holding and TITANIUM TRANSPORTGROUP.

Diversification Opportunities for Hawesko Holding and TITANIUM TRANSPORTGROUP

-0.39

Correlation Coefficient

Hawesko Holding  TITANIUM TRANSPORTGROUP

Very good diversification

The 3 months correlation between Hawesko and TITANIUM is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hawesko Holding AG and TITANIUM TRANSPORTGROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TITANIUM TRANSPORTGROUP has no effect on the direction of Hawesko Holding i.e., Hawesko Holding and TITANIUM TRANSPORTGROUP go up and down completely randomly.

Pair Corralation between Hawesko Holding and TITANIUM TRANSPORTGROUP

Assuming the 90 days trading horizon Hawesko Holding is expected to generate 2.74 times less return on investment than TITANIUM TRANSPORTGROUP. In addition to that, Hawesko Holding is 1.29 times more volatile than TITANIUM TRANSPORTGROUP. It trades about 0.01 of its total potential returns per unit of risk. TITANIUM TRANSPORTGROUP is currently generating about 0.04 per unit of volatility. If you would invest  146.00  in TITANIUM TRANSPORTGROUP on October 6, 2024 and sell it today you would earn a total of  7.00  from holding TITANIUM TRANSPORTGROUP or generate 4.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Hawesko Holding AG  vs.  TITANIUM TRANSPORTGROUP

Hawesko Holding AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hawesko Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hawesko Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TITANIUM TRANSPORTGROUP

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TITANIUM TRANSPORTGROUP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TITANIUM TRANSPORTGROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Hawesko Holding and TITANIUM TRANSPORTGROUP

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

The idea behind Hawesko Holding AG and TITANIUM TRANSPORTGROUP 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.