Correlation Between Hyrican Informationssyst and Air New

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

Diversification Opportunities for Hyrican Informationssyst and Air New

0.13

Correlation Coefficient

Hyrican Informationssyst  Air New

Average diversification

The 3 months correlation between Hyrican and Air is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and Air New Zealand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air New Zealand 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 Air New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air New Zealand has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and Air New go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and Air New

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 1.31 times more return on investment than Air New. However, Hyrican Informationssyst is 1.31 times more volatile than Air New Zealand. It trades about 0.04 of its potential returns per unit of risk. Air New Zealand is currently generating about 0.0 per unit of risk. If you would invest  374.00  in Hyrican Informationssysteme Aktiengesellschaft on October 5, 2024 and sell it today you would earn a total of  156.00  from holding Hyrican Informationssysteme Aktiengesellschaft or generate 41.71% return on investment over 90 days.

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

Hyrican Informationssysteme Ak  vs.  Air New Zealand

Hyrican Informationssyst

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Hyrican Informationssysteme Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Hyrican Informationssyst may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Air New Zealand

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Air New Zealand has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather uncertain basic indicators, Air New may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Hyrican Informationssyst and Air New

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and Air New Zealand 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 Stocks Directory module to find actively traded stocks across global markets.