Correlation Between Vow Green and Hexagon Composites

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

By analyzing existing cross correlation between Vow Green Metals and Hexagon Composites ASA, you can compare the effects of market volatilities on Vow Green and Hexagon Composites 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 Vow Green with a short position of Hexagon Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow Green and Hexagon Composites.

Diversification Opportunities for Vow Green and Hexagon Composites

0.0

Correlation Coefficient

Vow Green  Hexagon Composites

Pay attention - limited upside

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

Pair Corralation between Vow Green and Hexagon Composites

If you would invest  0.00  in Vow Green Metals on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Vow Green Metals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Vow Green Metals  vs.  Hexagon Composites ASA

Vow Green Metals

Risk-Adjusted Performance

Very Weak

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

Hexagon Composites ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hexagon Composites ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Vow Green and Hexagon Composites

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

The idea behind Vow Green Metals and Hexagon Composites 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.