Correlation Between Hexa Tradex and Credo Brands

Can any of the company-specific risk be diversified away by investing in both Hexa Tradex and Credo Brands 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 Credo Brands 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 Credo Brands Marketing, you can compare the effects of market volatilities on Hexa Tradex and Credo Brands 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 Credo Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexa Tradex and Credo Brands.

Diversification Opportunities for Hexa Tradex and Credo Brands

-0.15

Correlation Coefficient

Hexa Tradex  Credo Brands

Good diversification

The 3 months correlation between Hexa and Credo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hexa Tradex Limited and Credo Brands Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credo Brands Marketing 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 Credo Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credo Brands Marketing has no effect on the direction of Hexa Tradex i.e., Hexa Tradex and Credo Brands go up and down completely randomly.

Pair Corralation between Hexa Tradex and Credo Brands

Assuming the 90 days trading horizon Hexa Tradex is expected to generate 28.16 times less return on investment than Credo Brands. But when comparing it to its historical volatility, Hexa Tradex Limited is 2.78 times less risky than Credo Brands. It trades about 0.0 of its potential returns per unit of risk. Credo Brands Marketing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  13,007  in Credo Brands Marketing on May 4, 2025 and sell it today you would earn a total of  195.00  from holding Credo Brands Marketing or generate 1.5% return on investment over 90 days.

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

Hexa Tradex Limited  vs.  Credo Brands Marketing

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 somewhat strong fundamental indicators, Hexa Tradex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credo Brands Marketing

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Credo Brands Marketing are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Credo Brands may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Hexa Tradex and Credo Brands

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

The idea behind Hexa Tradex Limited and Credo Brands Marketing 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.

Check out your portfolio center.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..