Correlation Between Hexatronic Group and Acconeer

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

By analyzing existing cross correlation between Hexatronic Group AB and Acconeer AB, you can compare the effects of market volatilities on Hexatronic Group and Acconeer 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 Hexatronic Group with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Acconeer.

Diversification Opportunities for Hexatronic Group and Acconeer

0.95

Correlation Coefficient

Hexatronic Group  Acconeer

Almost no diversification

The 3 months correlation between Hexatronic and Acconeer is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Hexatronic Group 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 Hexatronic Group AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Acconeer go up and down completely randomly.

Pair Corralation between Hexatronic Group and Acconeer

Assuming the 90 days trading horizon Hexatronic Group AB is expected to generate 1.23 times more return on investment than Acconeer. However, Hexatronic Group is 1.23 times more volatile than Acconeer AB. It trades about -0.16 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.23 per unit of risk. If you would invest  5,194  in Hexatronic Group AB on September 27, 2024 and sell it today you would lose (1,570) from holding Hexatronic Group AB or give up 30.23% of portfolio value over 90 days.

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

Hexatronic Group AB  vs.  Acconeer AB

Hexatronic Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hexatronic Group AB 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Acconeer AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acconeer AB 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hexatronic Group and Acconeer

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

The idea behind Hexatronic Group AB and Acconeer AB 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 Commodity Directory module to find actively traded commodities issued by global exchanges.