Correlation Between Huddlestock Fintech and Polight ASA

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

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

Diversification Opportunities for Huddlestock Fintech and Polight ASA

-0.38

Correlation Coefficient

Huddlestock Fintech  Polight ASA

Very good diversification

The 3 months correlation between Huddlestock and Polight is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Huddlestock Fintech As and Polight ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polight ASA and Huddlestock Fintech 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 Huddlestock Fintech As are associated (or correlated) with Polight ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polight ASA has no effect on the direction of Huddlestock Fintech i.e., Huddlestock Fintech and Polight ASA go up and down completely randomly.

Pair Corralation between Huddlestock Fintech and Polight ASA

Assuming the 90 days trading horizon Huddlestock Fintech As is expected to under-perform the Polight ASA. But the stock apears to be less risky and, when comparing its historical volatility, Huddlestock Fintech As is 1.38 times less risky than Polight ASA. The stock trades about -0.18 of its potential returns per unit of risk. The Polight ASA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  437.00  in Polight ASA on April 23, 2025 and sell it today you would lose (13.00) from holding Polight ASA or give up 2.97% of portfolio value over 90 days.

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

Huddlestock Fintech As  vs.  Polight ASA

Huddlestock Fintech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Huddlestock Fintech As has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Polight ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Polight ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Polight ASA is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Huddlestock Fintech and Polight ASA

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

The idea behind Huddlestock Fintech As and Polight ASA 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..