Correlation Between Woodbrook Group and Halitron

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

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

Diversification Opportunities for Woodbrook Group and Halitron

0.0

Correlation Coefficient

Woodbrook Group  Halitron

Pay attention - limited upside

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

Pair Corralation between Woodbrook Group and Halitron

If you would invest  0.01  in Halitron on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Halitron or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Woodbrook Group Holdings  vs.  Halitron

Woodbrook Group Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Woodbrook Group Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Woodbrook Group reported solid returns over the last few months and may actually be approaching a breakup point.

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Woodbrook Group and Halitron

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

The idea behind Woodbrook Group Holdings and Halitron 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.