Correlation Between Hexatronic Group and Online Brands
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Online Brands 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 Online Brands 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 Online Brands Nordic, you can compare the effects of market volatilities on Hexatronic Group and Online Brands 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 Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Online Brands.
Diversification Opportunities for Hexatronic Group and Online Brands
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hexatronic and Online is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic 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 Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Online Brands go up and down completely randomly.
Pair Corralation between Hexatronic Group and Online Brands
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the Online Brands. But the stock apears to be less risky and, when comparing its historical volatility, Hexatronic Group AB is 1.27 times less risky than Online Brands. The stock trades about -0.12 of its potential returns per unit of risk. The Online Brands Nordic is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Online Brands Nordic on September 24, 2024 and sell it today you would earn a total of 435.00 from holding Online Brands Nordic or generate 36.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.48% |
Values | Daily Returns |
Hexatronic Group AB vs. Online Brands Nordic
Performance |
Timeline |
Hexatronic Group |
Online Brands Nordic |
Hexatronic Group and Online Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hexatronic Group and Online Brands
The main advantage of trading using opposite Hexatronic Group and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Evolution AB | Hexatronic Group vs. NIBE Industrier AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |