Correlation Between Hamama and Wilk Technologies
Can any of the company-specific risk be diversified away by investing in both Hamama and Wilk 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 Hamama and Wilk Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamama and Wilk Technologies, you can compare the effects of market volatilities on Hamama and Wilk 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 Hamama with a short position of Wilk Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamama and Wilk Technologies.
Diversification Opportunities for Hamama and Wilk Technologies
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamama and Wilk is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hamama and Wilk Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilk Technologies and Hamama 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 Hamama are associated (or correlated) with Wilk Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilk Technologies has no effect on the direction of Hamama i.e., Hamama and Wilk Technologies go up and down completely randomly.
Pair Corralation between Hamama and Wilk Technologies
Assuming the 90 days trading horizon Hamama is expected to generate 0.85 times more return on investment than Wilk Technologies. However, Hamama is 1.17 times less risky than Wilk Technologies. It trades about -0.04 of its potential returns per unit of risk. Wilk Technologies is currently generating about -0.29 per unit of risk. If you would invest 40,500 in Hamama on September 12, 2024 and sell it today you would lose (2,270) from holding Hamama or give up 5.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hamama vs. Wilk Technologies
Performance |
Timeline |
Hamama |
Wilk Technologies |
Hamama and Wilk Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hamama and Wilk Technologies
The main advantage of trading using opposite Hamama and Wilk Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamama position performs unexpectedly, Wilk 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 Wilk Technologies will offset losses from the drop in Wilk Technologies' long position.Hamama vs. Homebiogas | Hamama vs. Scope Metals Group | Hamama vs. Rapac Communication Infrastructure | Hamama vs. B Communications |
Wilk Technologies vs. Hamama | Wilk Technologies vs. Opal Balance | Wilk Technologies vs. B Communications | Wilk Technologies vs. Mivne Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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