Correlation Between Hong Kong and Arcticzymes Technologies

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

By analyzing existing cross correlation between Hong Kong Land and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Hong Kong and Arcticzymes Technologies 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 Hong Kong with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Arcticzymes Technologies.

Diversification Opportunities for Hong Kong and Arcticzymes Technologies

0.0

Correlation Coefficient

Hong Kong  Arcticzymes Technologies

Pay attention - limited upside

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

Pair Corralation between Hong Kong and Arcticzymes Technologies

If you would invest  1,300  in Arcticzymes Technologies ASA on December 2, 2024 and sell it today you would earn a total of  560.00  from holding Arcticzymes Technologies ASA or generate 43.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hong Kong Land  vs.  Arcticzymes Technologies ASA

Hong Kong Land

Risk-Adjusted Performance

Very Weak

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

Arcticzymes Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Arcticzymes Technologies ASA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Arcticzymes Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hong Kong and Arcticzymes Technologies

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

The idea behind Hong Kong Land and Arcticzymes Technologies ASA 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.