Correlation Between Haulotte Group and Linedata Services
Can any of the company-specific risk be diversified away by investing in both Haulotte Group and Linedata Services 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 Haulotte Group and Linedata Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haulotte Group SA and Linedata Services SA, you can compare the effects of market volatilities on Haulotte Group and Linedata Services 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 Haulotte Group with a short position of Linedata Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haulotte Group and Linedata Services.
Diversification Opportunities for Haulotte Group and Linedata Services
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haulotte and Linedata is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Haulotte Group SA and Linedata Services SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linedata Services and Haulotte Group 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 Haulotte Group SA are associated (or correlated) with Linedata Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linedata Services has no effect on the direction of Haulotte Group i.e., Haulotte Group and Linedata Services go up and down completely randomly.
Pair Corralation between Haulotte Group and Linedata Services
Assuming the 90 days trading horizon Haulotte Group SA is expected to under-perform the Linedata Services. In addition to that, Haulotte Group is 1.39 times more volatile than Linedata Services SA. It trades about -0.01 of its total potential returns per unit of risk. Linedata Services SA is currently generating about 0.15 per unit of volatility. If you would invest 6,720 in Linedata Services SA on September 6, 2024 and sell it today you would earn a total of 1,280 from holding Linedata Services SA or generate 19.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Haulotte Group SA vs. Linedata Services SA
Performance |
Timeline |
Haulotte Group SA |
Linedata Services |
Haulotte Group and Linedata Services Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haulotte Group and Linedata Services
The main advantage of trading using opposite Haulotte Group and Linedata Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haulotte Group position performs unexpectedly, Linedata Services 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 Linedata Services will offset losses from the drop in Linedata Services' long position.Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano SA |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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