Correlation Between Ströer SE and HAKUHODO

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

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

Diversification Opportunities for Ströer SE and HAKUHODO

0.0

Correlation Coefficient

Ströer SE  HAKUHODO

Pay attention - limited upside

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

Pair Corralation between Ströer SE and HAKUHODO

If you would invest  1,490  in HAKUHODO DY HLDG on April 24, 2025 and sell it today you would earn a total of  0.00  from holding HAKUHODO DY HLDG or generate 0.0% return on investment over 90 days.

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

Strer SE Co  vs.  HAKUHODO DY HLDG

Ströer SE

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Ströer SE and HAKUHODO

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

The idea behind Strer SE Co and HAKUHODO DY HLDG 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.