Correlation Between Husqvarna and Husqvarna
Can any of the company-specific risk be diversified away by investing in both Husqvarna and Husqvarna 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 Husqvarna and Husqvarna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husqvarna AB and Husqvarna AB, you can compare the effects of market volatilities on Husqvarna and Husqvarna 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 Husqvarna with a short position of Husqvarna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husqvarna and Husqvarna.
Diversification Opportunities for Husqvarna and Husqvarna
Average diversification
The 3 months correlation between Husqvarna and Husqvarna is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Husqvarna AB and Husqvarna AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husqvarna AB and Husqvarna 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 Husqvarna AB are associated (or correlated) with Husqvarna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husqvarna AB has no effect on the direction of Husqvarna i.e., Husqvarna and Husqvarna go up and down completely randomly.
Pair Corralation between Husqvarna and Husqvarna
Assuming the 90 days horizon Husqvarna AB is expected to generate 0.79 times more return on investment than Husqvarna. However, Husqvarna AB is 1.26 times less risky than Husqvarna. It trades about 0.03 of its potential returns per unit of risk. Husqvarna AB is currently generating about -0.21 per unit of risk. If you would invest 1,594 in Husqvarna AB on February 9, 2024 and sell it today you would earn a total of 14.00 from holding Husqvarna AB or generate 0.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Husqvarna AB vs. Husqvarna AB
Performance |
Timeline |
Husqvarna AB |
Husqvarna AB |
Husqvarna and Husqvarna Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Husqvarna and Husqvarna
The main advantage of trading using opposite Husqvarna and Husqvarna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husqvarna position performs unexpectedly, Husqvarna 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 Husqvarna will offset losses from the drop in Husqvarna's long position.Husqvarna vs. SMC Corp Japan | Husqvarna vs. Hong Kong Exchange | Husqvarna vs. AIA Group Ltd | Husqvarna vs. Aquagold International |
Husqvarna vs. SMC Corp Japan | Husqvarna vs. Hong Kong Exchange | Husqvarna vs. AIA Group Ltd | Husqvarna vs. Aquagold International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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