Correlation Between Hrvatski Telekom and Ingra Dd

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

By analyzing existing cross correlation between Hrvatski Telekom dd and Ingra dd, you can compare the effects of market volatilities on Hrvatski Telekom and Ingra Dd 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 Hrvatski Telekom with a short position of Ingra Dd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hrvatski Telekom and Ingra Dd.

Diversification Opportunities for Hrvatski Telekom and Ingra Dd

-0.53

Correlation Coefficient

Hrvatski Telekom  Ingra Dd

Excellent diversification

The 3 months correlation between Hrvatski and Ingra is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hrvatski Telekom dd and Ingra dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingra dd and Hrvatski Telekom 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 Hrvatski Telekom dd are associated (or correlated) with Ingra Dd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingra dd has no effect on the direction of Hrvatski Telekom i.e., Hrvatski Telekom and Ingra Dd go up and down completely randomly.

Pair Corralation between Hrvatski Telekom and Ingra Dd

Assuming the 90 days trading horizon Hrvatski Telekom dd is expected to generate 0.31 times more return on investment than Ingra Dd. However, Hrvatski Telekom dd is 3.21 times less risky than Ingra Dd. It trades about 0.08 of its potential returns per unit of risk. Ingra dd is currently generating about -0.03 per unit of risk. If you would invest  4,010  in Hrvatski Telekom dd on December 1, 2024 and sell it today you would earn a total of  190.00  from holding Hrvatski Telekom dd or generate 4.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	78.33%
Values	Daily Returns

Hrvatski Telekom dd  vs.  Ingra dd

Hrvatski Telekom

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hrvatski Telekom dd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hrvatski Telekom is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ingra dd

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Hrvatski Telekom and Ingra Dd

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

The idea behind Hrvatski Telekom dd and Ingra dd 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..