Correlation Between Humatech and Supercom
Can any of the company-specific risk be diversified away by investing in both Humatech and Supercom 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 Humatech and Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humatech and Supercom, you can compare the effects of market volatilities on Humatech and Supercom 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 Humatech with a short position of Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humatech and Supercom.
Diversification Opportunities for Humatech and Supercom
Good diversification
The 3 months correlation between Humatech and Supercom is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Humatech and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom and Humatech 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 Humatech are associated (or correlated) with Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Humatech i.e., Humatech and Supercom go up and down completely randomly.
Pair Corralation between Humatech and Supercom
Given the investment horizon of 90 days Humatech is expected to generate 26.0 times more return on investment than Supercom. However, Humatech is 26.0 times more volatile than Supercom. It trades about 0.13 of its potential returns per unit of risk. Supercom is currently generating about 0.05 per unit of risk. If you would invest 0.01 in Humatech on September 13, 2024 and sell it today you would earn a total of 0.17 from holding Humatech or generate 1700.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Humatech vs. Supercom
Performance |
Timeline |
Humatech |
Supercom |
Humatech and Supercom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Humatech and Supercom
The main advantage of trading using opposite Humatech and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humatech position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.Humatech vs. Aspen Insurance Holdings | Humatech vs. Siriuspoint | Humatech vs. Sun Life Financial | Humatech vs. Trupanion |
Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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