Correlation Between HEICO and Exasol AG

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

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

Diversification Opportunities for HEICO and Exasol AG

-0.74

Correlation Coefficient

HEICO  Exasol AG

Pay attention - limited upside

The 3 months correlation between HEICO and Exasol is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding HEICO and Exasol AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exasol AG and HEICO 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 HEICO are associated (or correlated) with Exasol AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exasol AG has no effect on the direction of HEICO i.e., HEICO and Exasol AG go up and down completely randomly.

Pair Corralation between HEICO and Exasol AG

Assuming the 90 days horizon HEICO is expected to generate 1.04 times more return on investment than Exasol AG. However, HEICO is 1.04 times more volatile than Exasol AG. It trades about 0.19 of its potential returns per unit of risk. Exasol AG is currently generating about -0.15 per unit of risk. If you would invest  21,182  in HEICO on April 24, 2025 and sell it today you would earn a total of  5,608  from holding HEICO or generate 26.48% return on investment over 90 days.

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

HEICO  vs.  Exasol AG

HEICO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HEICO are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, HEICO reported solid returns over the last few months and may actually be approaching a breakup point.

Exasol AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exasol AG 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 essential indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with HEICO and Exasol AG

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

The idea behind HEICO and Exasol AG 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.