Correlation Between Heliospectra Publ and Impact Coatings

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

By analyzing existing cross correlation between Heliospectra publ AB and Impact Coatings publ, you can compare the effects of market volatilities on Heliospectra Publ and Impact Coatings 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 Heliospectra Publ with a short position of Impact Coatings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heliospectra Publ and Impact Coatings.

Diversification Opportunities for Heliospectra Publ and Impact Coatings

-0.18

Correlation Coefficient

Heliospectra Publ  Impact Coatings

Good diversification

The 3 months correlation between Heliospectra and Impact is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Heliospectra publ AB and Impact Coatings publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Coatings publ and Heliospectra Publ 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 Heliospectra publ AB are associated (or correlated) with Impact Coatings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Coatings publ has no effect on the direction of Heliospectra Publ i.e., Heliospectra Publ and Impact Coatings go up and down completely randomly.

Pair Corralation between Heliospectra Publ and Impact Coatings

Assuming the 90 days trading horizon Heliospectra publ AB is expected to under-perform the Impact Coatings. In addition to that, Heliospectra Publ is 1.48 times more volatile than Impact Coatings publ. It trades about -0.02 of its total potential returns per unit of risk. Impact Coatings publ is currently generating about 0.08 per unit of volatility. If you would invest  333.00  in Impact Coatings publ on April 23, 2025 and sell it today you would earn a total of  57.00  from holding Impact Coatings publ or generate 17.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Heliospectra publ AB  vs.  Impact Coatings publ

Heliospectra publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heliospectra publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Impact Coatings publ

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Impact Coatings publ are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Impact Coatings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Heliospectra Publ and Impact Coatings

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

The idea behind Heliospectra publ AB and Impact Coatings publ 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.