Correlation Between Howard Hughes and MORE

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

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

Diversification Opportunities for Howard Hughes and MORE

0.53

Correlation Coefficient

Howard Hughes  MORE

Very weak diversification

The 3 months correlation between Howard and MORE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Howard Hughes and MORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MORE and Howard Hughes 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 Howard Hughes are associated (or correlated) with MORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MORE has no effect on the direction of Howard Hughes i.e., Howard Hughes and MORE go up and down completely randomly.

Pair Corralation between Howard Hughes and MORE

If you would invest  7,380  in Howard Hughes on September 4, 2024 and sell it today you would earn a total of  1,186  from holding Howard Hughes or generate 16.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Howard Hughes  vs.  MORE

Howard Hughes

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Howard Hughes are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Howard Hughes demonstrated solid returns over the last few months and may actually be approaching a breakup point.

MORE

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Howard Hughes and MORE

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

The idea behind Howard Hughes and MORE 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.