Correlation Between Hyrican Informationssyst and INTER CARS

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

By analyzing existing cross correlation between Hyrican Informationssysteme Aktiengesellschaft and INTER CARS SA, you can compare the effects of market volatilities on Hyrican Informationssyst and INTER CARS 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 Hyrican Informationssyst with a short position of INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and INTER CARS.

Diversification Opportunities for Hyrican Informationssyst and INTER CARS

-0.33

Correlation Coefficient

Hyrican Informationssyst  INTER CARS

Very good diversification

The 3 months correlation between Hyrican and INTER is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft are associated (or correlated) with INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and INTER CARS go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and INTER CARS

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 1.13 times more return on investment than INTER CARS. However, Hyrican Informationssyst is 1.13 times more volatile than INTER CARS SA. It trades about 0.05 of its potential returns per unit of risk. INTER CARS SA is currently generating about -0.01 per unit of risk. If you would invest  427.00  in Hyrican Informationssysteme Aktiengesellschaft on October 3, 2024 and sell it today you would earn a total of  103.00  from holding Hyrican Informationssysteme Aktiengesellschaft or generate 24.12% return on investment over 90 days.

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

Hyrican Informationssysteme Ak  vs.  INTER CARS SA

Hyrican Informationssyst

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hyrican Informationssysteme Aktiengesellschaft are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hyrican Informationssyst may actually be approaching a critical reversion point that can send shares even higher in February 2025.

INTER CARS SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INTER CARS SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, INTER CARS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hyrican Informationssyst and INTER CARS

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and INTER CARS SA 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.