Correlation Between HAKUHODO and Interpublic

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

By analyzing existing cross correlation between HAKUHODO DY HLDG and The Interpublic Group, you can compare the effects of market volatilities on HAKUHODO and Interpublic 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 HAKUHODO with a short position of Interpublic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAKUHODO and Interpublic.

Diversification Opportunities for HAKUHODO and Interpublic

0.0

Correlation Coefficient

HAKUHODO  Interpublic

Pay attention - limited upside

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

Pair Corralation between HAKUHODO and Interpublic

If you would invest  2,064  in The Interpublic Group on April 24, 2025 and sell it today you would lose (23.00) from holding The Interpublic Group or give up 1.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

HAKUHODO DY HLDG  vs.  The Interpublic Group

HAKUHODO DY HLDG

Risk-Adjusted Performance

Very Weak

Over the last 90 days HAKUHODO DY HLDG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, HAKUHODO is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Interpublic Group

Risk-Adjusted Performance

Very Weak

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

Pair Trading with HAKUHODO and Interpublic

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

The idea behind HAKUHODO DY HLDG and The Interpublic Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.