Correlation Between Hansen Technologies and Toys R

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

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

Diversification Opportunities for Hansen Technologies and Toys R

-0.84

Correlation Coefficient

Hansen Technologies  Toys R

Pay attention - limited upside

The 3 months correlation between Hansen and Toys is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies and Toys R Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toys R Us and Hansen 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 Hansen Technologies are associated (or correlated) with Toys R. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toys R Us has no effect on the direction of Hansen Technologies i.e., Hansen Technologies and Toys R go up and down completely randomly.

Pair Corralation between Hansen Technologies and Toys R

Assuming the 90 days trading horizon Hansen Technologies is expected to generate 0.33 times more return on investment than Toys R. However, Hansen Technologies is 3.05 times less risky than Toys R. It trades about 0.1 of its potential returns per unit of risk. Toys R Us is currently generating about -0.05 per unit of risk. If you would invest  440.00  in Hansen Technologies on October 7, 2024 and sell it today you would earn a total of  101.00  from holding Hansen Technologies or generate 22.95% return on investment over 90 days.

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

Hansen Technologies  vs.  Toys R Us

Hansen Technologies

Risk-Adjusted Performance

11 of 100

Good

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

Toys R Us

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Toys R Us 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 comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hansen Technologies and Toys R

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

The idea behind Hansen Technologies and Toys R Us 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.