Correlation Between Hyloris Developmentsen and Belysse Group

Can any of the company-specific risk be diversified away by investing in both Hyloris Developmentsen and Belysse Group 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 Hyloris Developmentsen and Belysse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hyloris Developmentsen Sa and Belysse Group NV, you can compare the effects of market volatilities on Hyloris Developmentsen and Belysse Group 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 Hyloris Developmentsen with a short position of Belysse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyloris Developmentsen and Belysse Group.

Diversification Opportunities for Hyloris Developmentsen and Belysse Group

0.28

Correlation Coefficient

Hyloris Developmentsen  Belysse Group

Modest diversification

The 3 months correlation between Hyloris and Belysse is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hyloris Developmentsen Sa and Belysse Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belysse Group NV and Hyloris Developmentsen 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 Hyloris Developmentsen Sa are associated (or correlated) with Belysse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belysse Group NV has no effect on the direction of Hyloris Developmentsen i.e., Hyloris Developmentsen and Belysse Group go up and down completely randomly.

Pair Corralation between Hyloris Developmentsen and Belysse Group

Assuming the 90 days trading horizon Hyloris Developmentsen Sa is expected to generate 1.87 times more return on investment than Belysse Group. However, Hyloris Developmentsen is 1.87 times more volatile than Belysse Group NV. It trades about 0.03 of its potential returns per unit of risk. Belysse Group NV is currently generating about -0.14 per unit of risk. If you would invest  588.00  in Hyloris Developmentsen Sa on September 15, 2024 and sell it today you would earn a total of  2.00  from holding Hyloris Developmentsen Sa or generate 0.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.31%
Values	Daily Returns

Hyloris Developmentsen Sa  vs.  Belysse Group NV

Hyloris Developmentsen

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyloris Developmentsen Sa are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak essential indicators, Hyloris Developmentsen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Belysse Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Belysse Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hyloris Developmentsen and Belysse Group

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

The idea behind Hyloris Developmentsen Sa and Belysse Group NV 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.