Correlation Between Hudson Technologies and Reitar Logtech

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

By analyzing existing cross correlation between Hudson Technologies and Reitar Logtech Holdings, you can compare the effects of market volatilities on Hudson Technologies and Reitar Logtech 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 Hudson Technologies with a short position of Reitar Logtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and Reitar Logtech.

Diversification Opportunities for Hudson Technologies and Reitar Logtech

0.57

Correlation Coefficient

Hudson Technologies  Reitar Logtech

Very weak diversification

The 3 months correlation between Hudson and Reitar is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and Reitar Logtech go up and down completely randomly.

Pair Corralation between Hudson Technologies and Reitar Logtech

Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the Reitar Logtech. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Technologies is 3.74 times less risky than Reitar Logtech. The stock trades about -0.18 of its potential returns per unit of risk. The Reitar Logtech Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  379.00  in Reitar Logtech Holdings on October 5, 2024 and sell it today you would lose (5.00) from holding Reitar Logtech Holdings or give up 1.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hudson Technologies  vs.  Reitar Logtech Holdings

Hudson Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Reitar Logtech Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Reitar Logtech Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Reitar Logtech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Hudson Technologies and Reitar Logtech

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

The idea behind Hudson Technologies and Reitar Logtech Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.