Correlation Between Hosken Consolidated and Renergen

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

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

Diversification Opportunities for Hosken Consolidated and Renergen

0.0

Correlation Coefficient

Hosken Consolidated  Renergen

Pay attention - limited upside

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

Pair Corralation between Hosken Consolidated and Renergen

If you would invest  0.00  in Renergen on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Renergen or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Hosken Consolidated Investment  vs.  Renergen

Hosken Consolidated

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hosken Consolidated Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Renergen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Renergen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Renergen is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hosken Consolidated and Renergen

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

The idea behind Hosken Consolidated Investments and Renergen 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.