Correlation Between Hyrican Informationssyst and GREEN PLAINS

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

Diversification Opportunities for Hyrican Informationssyst and GREEN PLAINS

-0.02

Correlation Coefficient

Hyrican Informationssyst  GREEN PLAINS

Good diversification

The 3 months correlation between Hyrican and GREEN is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and GREEN PLAINS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREEN PLAINS 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 GREEN PLAINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREEN PLAINS has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and GREEN PLAINS go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and GREEN PLAINS

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 0.06 times more return on investment than GREEN PLAINS. However, Hyrican Informationssysteme Aktiengesellschaft is 16.5 times less risky than GREEN PLAINS. It trades about -0.1 of its potential returns per unit of risk. GREEN PLAINS is currently generating about -0.18 per unit of risk. If you would invest  530.00  in Hyrican Informationssysteme Aktiengesellschaft on December 21, 2024 and sell it today you would lose (10.00) from holding Hyrican Informationssysteme Aktiengesellschaft or give up 1.89% of portfolio value over 90 days.

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

Hyrican Informationssysteme Ak  vs.  GREEN PLAINS

Hyrican Informationssyst

Risk-Adjusted Performance

Very Weak

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

GREEN PLAINS

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREEN PLAINS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hyrican Informationssyst and GREEN PLAINS

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and GREEN PLAINS 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.