Correlation Between Hastings Technology and CEOTRONICS
Can any of the company-specific risk be diversified away by investing in both Hastings Technology and CEOTRONICS 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 Hastings Technology and CEOTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hastings Technology Metals and CEOTRONICS, you can compare the effects of market volatilities on Hastings Technology and CEOTRONICS 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 Hastings Technology with a short position of CEOTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hastings Technology and CEOTRONICS.
Diversification Opportunities for Hastings Technology and CEOTRONICS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hastings and CEOTRONICS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hastings Technology Metals and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS and Hastings Technology 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 Hastings Technology Metals are associated (or correlated) with CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of Hastings Technology i.e., Hastings Technology and CEOTRONICS go up and down completely randomly.
Pair Corralation between Hastings Technology and CEOTRONICS
Assuming the 90 days horizon Hastings Technology Metals is expected to generate 1.43 times more return on investment than CEOTRONICS. However, Hastings Technology is 1.43 times more volatile than CEOTRONICS. It trades about 0.15 of its potential returns per unit of risk. CEOTRONICS is currently generating about 0.16 per unit of risk. If you would invest 16.00 in Hastings Technology Metals on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Hastings Technology Metals or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hastings Technology Metals vs. CEOTRONICS
Performance |
| Timeline |
| Hastings Technology |
| CEOTRONICS |
Hastings Technology and CEOTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hastings Technology and CEOTRONICS
The main advantage of trading using opposite Hastings Technology and CEOTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hastings Technology position performs unexpectedly, CEOTRONICS 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 CEOTRONICS will offset losses from the drop in CEOTRONICS's long position.| Hastings Technology vs. ARDAGH METAL PACDL 0001 | Hastings Technology vs. Cogent Communications Holdings | Hastings Technology vs. Shenandoah Telecommunications | Hastings Technology vs. Aluminum of |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |