Correlation Between Hexatronic Group and Unibap AB
Can any of the company-specific risk be diversified away by investing in both Hexatronic Group and Unibap AB 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 Unibap AB 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 Unibap AB, you can compare the effects of market volatilities on Hexatronic Group and Unibap AB 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 Unibap AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Unibap AB.
Diversification Opportunities for Hexatronic Group and Unibap AB
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hexatronic and Unibap is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Unibap AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibap 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 Unibap AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibap AB has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Unibap AB go up and down completely randomly.
Pair Corralation between Hexatronic Group and Unibap AB
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the Unibap AB. In addition to that, Hexatronic Group is 1.23 times more volatile than Unibap AB. It trades about -0.07 of its total potential returns per unit of risk. Unibap AB is currently generating about 0.11 per unit of volatility. If you would invest 360.00 in Unibap AB on September 26, 2024 and sell it today you would earn a total of 18.00 from holding Unibap AB or generate 5.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hexatronic Group AB vs. Unibap AB
Performance |
Timeline |
Hexatronic Group |
Unibap AB |
Hexatronic Group and Unibap AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hexatronic Group and Unibap AB
The main advantage of trading using opposite Hexatronic Group and Unibap AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Unibap AB 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 Unibap AB will offset losses from the drop in Unibap AB's long position.Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Evolution AB | Hexatronic Group vs. NIBE Industrier AB |
Unibap AB vs. Acconeer AB | Unibap AB vs. BIMobject AB | Unibap AB vs. Gapwaves AB Series | Unibap AB vs. Sedana Medical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |