Correlation Between Hyrican Informationssyst and Broadwind

Can any of the company-specific risk be diversified away by investing in both Hyrican Informationssyst and Broadwind 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 Broadwind 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 Broadwind, you can compare the effects of market volatilities on Hyrican Informationssyst and Broadwind 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 Broadwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and Broadwind.

Diversification Opportunities for Hyrican Informationssyst and Broadwind

-0.72

Correlation Coefficient

Hyrican Informationssyst  Broadwind

Pay attention - limited upside

The 3 months correlation between Hyrican and Broadwind is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and Broadwind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadwind 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 Broadwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadwind has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and Broadwind go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and Broadwind

If you would invest  177.00  in Broadwind on October 4, 2024 and sell it today you would lose (1.00) from holding Broadwind or give up 0.56% of portfolio value over 90 days.

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

Hyrican Informationssysteme Ak  vs.  Broadwind

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.

Broadwind

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Broadwind has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Broadwind is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hyrican Informationssyst and Broadwind

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and Broadwind 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.