Correlation Between Ion Beam and Hershey
Can any of the company-specific risk be diversified away by investing in both Ion Beam and Hershey 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 Ion Beam and Hershey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Hershey Co, you can compare the effects of market volatilities on Ion Beam and Hershey 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 Ion Beam with a short position of Hershey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Hershey.
Diversification Opportunities for Ion Beam and Hershey
Weak diversification
The 3 months correlation between Ion and Hershey is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Hershey Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hershey and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Hershey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hershey has no effect on the direction of Ion Beam i.e., Ion Beam and Hershey go up and down completely randomly.
Pair Corralation between Ion Beam and Hershey
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 1.63 times more return on investment than Hershey. However, Ion Beam is 1.63 times more volatile than Hershey Co. It trades about 0.05 of its potential returns per unit of risk. Hershey Co is currently generating about -0.04 per unit of risk. If you would invest 1,041 in Ion Beam Applications on October 18, 2024 and sell it today you would earn a total of 298.00 from holding Ion Beam Applications or generate 28.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ion Beam Applications vs. Hershey Co
Performance |
| Timeline |
| Ion Beam Applications |
| Hershey |
Ion Beam and Hershey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Hershey
The main advantage of trading using opposite Ion Beam and Hershey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, Hershey 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 Hershey will offset losses from the drop in Hershey's long position.| Ion Beam vs. Edita Food Industries | Ion Beam vs. Charter Communications Cl | Ion Beam vs. Zegona Communications Plc | Ion Beam vs. Sligro Food Group |
| Hershey vs. G5 Entertainment AB | Hershey vs. Ion Beam Applications | Hershey vs. Flutter Entertainment PLC | Hershey vs. Datalogic |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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