Correlation Between Hensoldt and PREMIUM BRANDS

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

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

Diversification Opportunities for Hensoldt and PREMIUM BRANDS

0.0

Correlation Coefficient

Hensoldt  PREMIUM BRANDS

Pay attention - limited upside

The 3 months correlation between Hensoldt and PREMIUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hensoldt Ag and PREMIUM BRANDS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PREMIUM BRANDS HLDGS and Hensoldt 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 Hensoldt Ag are associated (or correlated) with PREMIUM BRANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PREMIUM BRANDS HLDGS has no effect on the direction of Hensoldt i.e., Hensoldt and PREMIUM BRANDS go up and down completely randomly.

Pair Corralation between Hensoldt and PREMIUM BRANDS

If you would invest  2,201  in Hensoldt Ag on March 13, 2024 and sell it today you would earn a total of  1,507  from holding Hensoldt Ag or generate 68.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hensoldt Ag  vs.  PREMIUM BRANDS HLDGS

Hensoldt Ag

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hensoldt Ag are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hensoldt unveiled solid returns over the last few months and may actually be approaching a breakup point.

PREMIUM BRANDS HLDGS

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PREMIUM BRANDS HLDGS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PREMIUM BRANDS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hensoldt and PREMIUM BRANDS

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

The idea behind Hensoldt Ag and PREMIUM BRANDS HLDGS 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.