Correlation Between HAMMONIA Schiffsholding and Twilio

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

By analyzing existing cross correlation between HAMMONIA Schiffsholding AG and Twilio Inc, you can compare the effects of market volatilities on HAMMONIA Schiffsholding and Twilio 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 HAMMONIA Schiffsholding with a short position of Twilio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAMMONIA Schiffsholding and Twilio.

Diversification Opportunities for HAMMONIA Schiffsholding and Twilio

0.68

Correlation Coefficient

HAMMONIA Schiffsholding  Twilio

Poor diversification

The 3 months correlation between HAMMONIA and Twilio is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding HAMMONIA Schiffsholding AG and Twilio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twilio Inc and HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding AG are associated (or correlated) with Twilio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twilio Inc has no effect on the direction of HAMMONIA Schiffsholding i.e., HAMMONIA Schiffsholding and Twilio go up and down completely randomly.

Pair Corralation between HAMMONIA Schiffsholding and Twilio

Assuming the 90 days trading horizon HAMMONIA Schiffsholding is expected to generate 1.02 times less return on investment than Twilio. In addition to that, HAMMONIA Schiffsholding is 1.02 times more volatile than Twilio Inc. It trades about 0.14 of its total potential returns per unit of risk. Twilio Inc is currently generating about 0.15 per unit of volatility. If you would invest  9,232  in Twilio Inc on October 6, 2025 and sell it today you would earn a total of  3,060  from holding Twilio Inc or generate 33.15% return on investment over 90 days.

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

HAMMONIA Schiffsholding AG  vs.  Twilio Inc

HAMMONIA Schiffsholding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HAMMONIA Schiffsholding AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, HAMMONIA Schiffsholding displayed solid returns over the last few months and may actually be approaching a breakup point.

Twilio Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Twilio Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Twilio reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HAMMONIA Schiffsholding and Twilio

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

The idea behind HAMMONIA Schiffsholding AG and Twilio Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.