Correlation Between Sabvest Capital and Hulamin

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

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

Diversification Opportunities for Sabvest Capital and Hulamin

-0.86

Correlation Coefficient

Sabvest Capital  Hulamin

Pay attention - limited upside

The 3 months correlation between Sabvest and Hulamin is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sabvest Capital and Hulamin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hulamin and Sabvest Capital 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 Sabvest Capital are associated (or correlated) with Hulamin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hulamin has no effect on the direction of Sabvest Capital i.e., Sabvest Capital and Hulamin go up and down completely randomly.

Pair Corralation between Sabvest Capital and Hulamin

Assuming the 90 days trading horizon Sabvest Capital is expected to generate 0.86 times more return on investment than Hulamin. However, Sabvest Capital is 1.17 times less risky than Hulamin. It trades about 0.22 of its potential returns per unit of risk. Hulamin is currently generating about -0.2 per unit of risk. If you would invest  912,400  in Sabvest Capital on October 22, 2024 and sell it today you would earn a total of  57,600  from holding Sabvest Capital or generate 6.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Sabvest Capital  vs.  Hulamin

Sabvest Capital

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sabvest Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Sabvest Capital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hulamin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hulamin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Sabvest Capital and Hulamin

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

The idea behind Sabvest Capital and Hulamin 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.