Correlation Between Hyloris Developmentsen and Celyad SA

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

Diversification Opportunities for Hyloris Developmentsen and Celyad SA

0.27

Correlation Coefficient

Hyloris Developmentsen  Celyad SA

Modest diversification

The 3 months correlation between Hyloris and Celyad is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hyloris Developmentsen Sa and Celyad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celyad SA 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 Celyad SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celyad SA has no effect on the direction of Hyloris Developmentsen i.e., Hyloris Developmentsen and Celyad SA go up and down completely randomly.

Pair Corralation between Hyloris Developmentsen and Celyad SA

Assuming the 90 days trading horizon Hyloris Developmentsen is expected to generate 4.76 times less return on investment than Celyad SA. But when comparing it to its historical volatility, Hyloris Developmentsen Sa is 3.24 times less risky than Celyad SA. It trades about 0.02 of its potential returns per unit of risk. Celyad SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  64.00  in Celyad SA on November 28, 2024 and sell it today you would lose (10.00) from holding Celyad SA or give up 15.62% of portfolio value over 90 days.

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

Hyloris Developmentsen Sa  vs.  Celyad SA

Hyloris Developmentsen

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyloris Developmentsen Sa are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable essential indicators, Hyloris Developmentsen is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Celyad SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Celyad SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Celyad SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hyloris Developmentsen and Celyad SA

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

The idea behind Hyloris Developmentsen Sa and Celyad SA 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.