Correlation Between Henderson High and Santech Holdings
Can any of the company-specific risk be diversified away by investing in both Henderson High and Santech Holdings 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 Henderson High and Santech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson High Income and Santech Holdings Limited, you can compare the effects of market volatilities on Henderson High and Santech Holdings 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 Henderson High with a short position of Santech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson High and Santech Holdings.
Diversification Opportunities for Henderson High and Santech Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henderson and Santech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Henderson High Income and Santech Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santech Holdings and Henderson High 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 Henderson High Income are associated (or correlated) with Santech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santech Holdings has no effect on the direction of Henderson High i.e., Henderson High and Santech Holdings go up and down completely randomly.
Pair Corralation between Henderson High and Santech Holdings
Assuming the 90 days trading horizon Henderson High is expected to generate 4.53 times less return on investment than Santech Holdings. But when comparing it to its historical volatility, Henderson High Income is 18.7 times less risky than Santech Holdings. It trades about 0.4 of its potential returns per unit of risk. Santech Holdings Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Santech Holdings Limited on September 25, 2025 and sell it today you would earn a total of 20.00 from holding Santech Holdings Limited or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson High Income vs. Santech Holdings Limited
Performance |
| Timeline |
| Henderson High Income |
| Santech Holdings |
Henderson High and Santech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson High and Santech Holdings
The main advantage of trading using opposite Henderson High and Santech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson High position performs unexpectedly, Santech Holdings 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 Santech Holdings will offset losses from the drop in Santech Holdings' long position.| Henderson High vs. Rockfire Resources plc | Henderson High vs. Ikigai Ventures | Henderson High vs. Golden Metal Resources | Henderson High vs. Pantheon Resources |
| Santech Holdings vs. Amesite Operating Co | Santech Holdings vs. CXApp Inc | Santech Holdings vs. ConnectM Technology Solutions, | Santech Holdings vs. The GrowHub Limited |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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