Correlation Between Octopus Aim and Hansa Trust

Can any of the company-specific risk be diversified away by investing in both Octopus Aim and Hansa Trust 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 Octopus Aim and Hansa Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Octopus Aim Vct and Hansa Trust, you can compare the effects of market volatilities on Octopus Aim and Hansa Trust 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 Octopus Aim with a short position of Hansa Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Octopus Aim and Hansa Trust.

Diversification Opportunities for Octopus Aim and Hansa Trust

0.0

Correlation Coefficient

Octopus Aim  Hansa Trust

Pay attention - limited upside

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

Pair Corralation between Octopus Aim and Hansa Trust

If you would invest  0.00  in Hansa Trust on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Hansa Trust or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Octopus Aim Vct  vs.  Hansa Trust

Octopus Aim Vct

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Octopus Aim Vct has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Octopus Aim is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Hansa Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hansa Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Hansa Trust is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Octopus Aim and Hansa Trust

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

The idea behind Octopus Aim Vct and Hansa Trust 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.