Correlation Between Hexa Tradex and Tinna Rubber

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

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

Diversification Opportunities for Hexa Tradex and Tinna Rubber

0.75

Correlation Coefficient

Hexa Tradex  Tinna Rubber

Poor diversification

The 3 months correlation between Hexa and Tinna is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hexa Tradex Limited and Tinna Rubber and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinna Rubber and Hexa Tradex 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 Hexa Tradex Limited are associated (or correlated) with Tinna Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinna Rubber has no effect on the direction of Hexa Tradex i.e., Hexa Tradex and Tinna Rubber go up and down completely randomly.

Pair Corralation between Hexa Tradex and Tinna Rubber

Assuming the 90 days trading horizon Hexa Tradex Limited is expected to generate 0.82 times more return on investment than Tinna Rubber. However, Hexa Tradex Limited is 1.22 times less risky than Tinna Rubber. It trades about -0.07 of its potential returns per unit of risk. Tinna Rubber and is currently generating about -0.07 per unit of risk. If you would invest  19,985  in Hexa Tradex Limited on April 24, 2025 and sell it today you would lose (1,497) from holding Hexa Tradex Limited or give up 7.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Hexa Tradex Limited  vs.  Tinna Rubber and

Hexa Tradex Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hexa Tradex Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Tinna Rubber

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tinna Rubber and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady 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.

Pair Trading with Hexa Tradex and Tinna Rubber

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

The idea behind Hexa Tradex Limited and Tinna Rubber and 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.