Correlation Between Staude Capital and ImExHS

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

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

Diversification Opportunities for Staude Capital and ImExHS

-0.64

Correlation Coefficient

Staude Capital  ImExHS

Excellent diversification

The 3 months correlation between Staude and ImExHS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Staude Capital Global and ImExHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImExHS and Staude 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 Staude Capital Global are associated (or correlated) with ImExHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImExHS has no effect on the direction of Staude Capital i.e., Staude Capital and ImExHS go up and down completely randomly.

Pair Corralation between Staude Capital and ImExHS

Assuming the 90 days trading horizon Staude Capital Global is expected to generate 0.19 times more return on investment than ImExHS. However, Staude Capital Global is 5.26 times less risky than ImExHS. It trades about -0.07 of its potential returns per unit of risk. ImExHS is currently generating about -0.16 per unit of risk. If you would invest  131.00  in Staude Capital Global on September 5, 2024 and sell it today you would lose (2.00) from holding Staude Capital Global or give up 1.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Staude Capital Global  vs.  ImExHS

Staude Capital Global

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Staude Capital Global are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Staude Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ImExHS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ImExHS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Staude Capital and ImExHS

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

The idea behind Staude Capital Global and ImExHS 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..