Correlation Between HUDSON GLOBAL and HAMMONIA Schiffsholding

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

By analyzing existing cross correlation between HUDSON GLOBAL INCDL 001 and HAMMONIA Schiffsholding AG, you can compare the effects of market volatilities on HUDSON GLOBAL and HAMMONIA Schiffsholding 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 HUDSON GLOBAL with a short position of HAMMONIA Schiffsholding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUDSON GLOBAL and HAMMONIA Schiffsholding.

Diversification Opportunities for HUDSON GLOBAL and HAMMONIA Schiffsholding

0.04

Correlation Coefficient

HUDSON GLOBAL  HAMMONIA Schiffsholding

Significant diversification

The 3 months correlation between HUDSON and HAMMONIA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding HUDSON GLOBAL INCDL 001 and HAMMONIA Schiffsholding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAMMONIA Schiffsholding and HUDSON GLOBAL 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 HUDSON GLOBAL INCDL 001 are associated (or correlated) with HAMMONIA Schiffsholding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAMMONIA Schiffsholding has no effect on the direction of HUDSON GLOBAL i.e., HUDSON GLOBAL and HAMMONIA Schiffsholding go up and down completely randomly.

Pair Corralation between HUDSON GLOBAL and HAMMONIA Schiffsholding

Assuming the 90 days trading horizon HUDSON GLOBAL INCDL 001 is expected to under-perform the HAMMONIA Schiffsholding. But the stock apears to be less risky and, when comparing its historical volatility, HUDSON GLOBAL INCDL 001 is 1.36 times less risky than HAMMONIA Schiffsholding. The stock trades about -0.03 of its potential returns per unit of risk. The HAMMONIA Schiffsholding AG is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  26,200  in HAMMONIA Schiffsholding AG on April 22, 2025 and sell it today you would earn a total of  1,200  from holding HAMMONIA Schiffsholding AG or generate 4.58% return on investment over 90 days.

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

HUDSON GLOBAL INCDL 001  vs.  HAMMONIA Schiffsholding AG

HUDSON GLOBAL INCDL

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUDSON GLOBAL INCDL 001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, HUDSON GLOBAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

HAMMONIA Schiffsholding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HAMMONIA Schiffsholding AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, HAMMONIA Schiffsholding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with HUDSON GLOBAL and HAMMONIA Schiffsholding

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

The idea behind HUDSON GLOBAL INCDL 001 and HAMMONIA Schiffsholding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.