Correlation Between Haleon Plc and HT
Can any of the company-specific risk be diversified away by investing in both Haleon Plc and HT 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 Haleon Plc and HT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and HT, you can compare the effects of market volatilities on Haleon Plc and HT 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 Haleon Plc with a short position of HT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and HT.
Diversification Opportunities for Haleon Plc and HT
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haleon and HT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and HT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HT and Haleon Plc 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 Haleon plc are associated (or correlated) with HT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HT has no effect on the direction of Haleon Plc i.e., Haleon Plc and HT go up and down completely randomly.
Pair Corralation between Haleon Plc and HT
Considering the 90-day investment horizon Haleon plc is expected to under-perform the HT. But the stock apears to be less risky and, when comparing its historical volatility, Haleon plc is 35.64 times less risky than HT. The stock trades about -0.16 of its potential returns per unit of risk. The HT is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 21.00 in HT on June 3, 2025 and sell it today you would earn a total of 28.00 from holding HT or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Haleon plc vs. HT
Performance |
| Timeline |
| Haleon plc |
| HT |
Haleon Plc and HT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and HT
The main advantage of trading using opposite Haleon Plc and HT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc position performs unexpectedly, HT 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 HT will offset losses from the drop in HT's long position.| Haleon Plc vs. Viatris | Haleon Plc vs. Takeda Pharmaceutical Co | Haleon Plc vs. Elanco Animal Health | Haleon Plc vs. Zoetis Inc |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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