Correlation Between Hudson Pacific and AFC Ajax

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

By analyzing existing cross correlation between Hudson Pacific Properties and AFC Ajax NV, you can compare the effects of market volatilities on Hudson Pacific and AFC Ajax 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 Hudson Pacific with a short position of AFC Ajax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Pacific and AFC Ajax.

Diversification Opportunities for Hudson Pacific and AFC Ajax

0.49

Correlation Coefficient

Hudson Pacific  AFC Ajax

Very weak diversification

The 3 months correlation between Hudson and AFC is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Pacific Properties and AFC Ajax NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Ajax NV and Hudson Pacific 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 Hudson Pacific Properties are associated (or correlated) with AFC Ajax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Ajax NV has no effect on the direction of Hudson Pacific i.e., Hudson Pacific and AFC Ajax go up and down completely randomly.

Pair Corralation between Hudson Pacific and AFC Ajax

Considering the 90-day investment horizon Hudson Pacific Properties is expected to under-perform the AFC Ajax. In addition to that, Hudson Pacific is 4.74 times more volatile than AFC Ajax NV. It trades about -0.02 of its total potential returns per unit of risk. AFC Ajax NV is currently generating about -0.04 per unit of volatility. If you would invest  1,086  in AFC Ajax NV on August 3, 2025 and sell it today you would lose (178.00) from holding AFC Ajax NV or give up 16.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.21%
Values	Daily Returns

Hudson Pacific Properties  vs.  AFC Ajax NV

Hudson Pacific Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hudson Pacific Properties are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Hudson Pacific is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

AFC Ajax NV

Risk-Adjusted Performance

Weakest

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

Pair Trading with Hudson Pacific and AFC Ajax

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

The idea behind Hudson Pacific Properties and AFC Ajax NV 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.