Correlation Between Sif Holding and Hydratec Industries

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

By analyzing existing cross correlation between Sif Holding NV and Hydratec Industries NV, you can compare the effects of market volatilities on Sif Holding and Hydratec Industries 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 Sif Holding with a short position of Hydratec Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sif Holding and Hydratec Industries.

Diversification Opportunities for Sif Holding and Hydratec Industries

-0.57

Correlation Coefficient

Sif Holding  Hydratec Industries

Excellent diversification

The 3 months correlation between Sif and Hydratec is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sif Holding NV and Hydratec Industries NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydratec Industries and Sif Holding 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 Sif Holding NV are associated (or correlated) with Hydratec Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydratec Industries has no effect on the direction of Sif Holding i.e., Sif Holding and Hydratec Industries go up and down completely randomly.

Pair Corralation between Sif Holding and Hydratec Industries

Assuming the 90 days trading horizon Sif Holding NV is expected to under-perform the Hydratec Industries. But the stock apears to be less risky and, when comparing its historical volatility, Sif Holding NV is 1.01 times less risky than Hydratec Industries. The stock trades about -0.16 of its potential returns per unit of risk. The Hydratec Industries NV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  16,500  in Hydratec Industries NV on August 11, 2025 and sell it today you would earn a total of  1,400  from holding Hydratec Industries NV or generate 8.48% return on investment over 90 days.

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

Sif Holding NV  vs.  Hydratec Industries NV

Sif Holding NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Sif Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hydratec Industries

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Hydratec Industries NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hydratec Industries may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Sif Holding and Hydratec Industries

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

The idea behind Sif Holding NV and Hydratec Industries 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.