Correlation Between Hypera SA and Molecule Holdings

Can any of the company-specific risk be diversified away by investing in both Hypera SA and Molecule Holdings 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 Hypera SA and Molecule Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hypera SA and Molecule Holdings, you can compare the effects of market volatilities on Hypera SA and Molecule Holdings 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 Hypera SA with a short position of Molecule Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hypera SA and Molecule Holdings.

Diversification Opportunities for Hypera SA and Molecule Holdings

0.0

Correlation Coefficient

Hypera SA  Molecule Holdings

Pay attention - limited upside

The 3 months correlation between Hypera and Molecule is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hypera SA and Molecule Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecule Holdings and Hypera SA 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 Hypera SA are associated (or correlated) with Molecule Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecule Holdings has no effect on the direction of Hypera SA i.e., Hypera SA and Molecule Holdings go up and down completely randomly.

Pair Corralation between Hypera SA and Molecule Holdings

If you would invest  0.25  in Molecule Holdings on September 11, 2024 and sell it today you would earn a total of  0.00  from holding Molecule Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Hypera SA  vs.  Molecule Holdings

Hypera SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hypera SA 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 primary indicators remain fairly 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.

Molecule Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hypera SA and Molecule Holdings

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

The idea behind Hypera SA and Molecule Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.