Correlation Between Hyrican Informationssyst and FORWARD AIR

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

Diversification Opportunities for Hyrican Informationssyst and FORWARD AIR

-0.15

Correlation Coefficient

Hyrican Informationssyst  FORWARD AIR

Good diversification

The 3 months correlation between Hyrican and FORWARD is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P 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 FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and FORWARD AIR go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and FORWARD AIR

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 0.51 times more return on investment than FORWARD AIR. However, Hyrican Informationssysteme Aktiengesellschaft is 1.94 times less risky than FORWARD AIR. It trades about 0.04 of its potential returns per unit of risk. FORWARD AIR P is currently generating about -0.03 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hyrican Informationssysteme Ak  vs.  FORWARD AIR P

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.

FORWARD AIR P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FORWARD AIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Hyrican Informationssyst and FORWARD AIR

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and FORWARD AIR P 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.