Correlation Between TRADELINK ELECTRON and HYBRIGENICS

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

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

Diversification Opportunities for TRADELINK ELECTRON and HYBRIGENICS

0.0

Correlation Coefficient

TRADELINK ELECTRON  HYBRIGENICS

Pay attention - limited upside

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

Pair Corralation between TRADELINK ELECTRON and HYBRIGENICS

If you would invest  0.64  in HYBRIGENICS A on December 25, 2024 and sell it today you would lose (0.01) from holding HYBRIGENICS A or give up 1.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

TRADELINK ELECTRON  vs.  HYBRIGENICS A

TRADELINK ELECTRON

Risk-Adjusted Performance

Very Weak

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

HYBRIGENICS A

Risk-Adjusted Performance

Modest

Over the last 90 days HYBRIGENICS A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak fundamental drivers, HYBRIGENICS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TRADELINK ELECTRON and HYBRIGENICS

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

The idea behind TRADELINK ELECTRON and HYBRIGENICS A 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.