Correlation Between HANetf ICAV and HANetf ICAV

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

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

Diversification Opportunities for HANetf ICAV and HANetf ICAV

0.01

Correlation Coefficient

HANetf ICAV  HANetf ICAV

Significant diversification

The 3 months correlation between HANetf and HANetf is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HANetf ICAV and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and HANetf ICAV 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 HANetf ICAV are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of HANetf ICAV i.e., HANetf ICAV and HANetf ICAV go up and down completely randomly.

Pair Corralation between HANetf ICAV and HANetf ICAV

Assuming the 90 days trading horizon HANetf ICAV is expected to generate 0.78 times more return on investment than HANetf ICAV. However, HANetf ICAV is 1.28 times less risky than HANetf ICAV. It trades about 0.36 of its potential returns per unit of risk. HANetf ICAV is currently generating about -0.03 per unit of risk. If you would invest  693.00  in HANetf ICAV on September 28, 2024 and sell it today you would earn a total of  164.00  from holding HANetf ICAV or generate 23.67% return on investment over 90 days.

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

HANetf ICAV   vs.  HANetf ICAV

HANetf ICAV

Risk-Adjusted Performance

28 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in HANetf ICAV are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, HANetf ICAV exhibited solid returns over the last few months and may actually be approaching a breakup point.

HANetf ICAV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HANetf ICAV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HANetf ICAV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HANetf ICAV and HANetf ICAV

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

The idea behind HANetf ICAV and HANetf ICAV 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.