Correlation Between Hastings Technology and Hyster-Yale Materials
Can any of the company-specific risk be diversified away by investing in both Hastings Technology and Hyster-Yale Materials 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 Hyster-Yale Materials 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on Hastings Technology and Hyster-Yale Materials 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 Hyster-Yale Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hastings Technology and Hyster-Yale Materials.
Diversification Opportunities for Hastings Technology and Hyster-Yale Materials
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hastings and Hyster-Yale is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hastings Technology Metals and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster-Yale Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Hastings Technology i.e., Hastings Technology and Hyster-Yale Materials go up and down completely randomly.
Pair Corralation between Hastings Technology and Hyster-Yale Materials
Assuming the 90 days horizon Hastings Technology Metals is expected to generate 1.72 times more return on investment than Hyster-Yale Materials. However, Hastings Technology is 1.72 times more volatile than Hyster Yale Materials Handling. It trades about 0.15 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.08 per unit of risk. If you would invest 15.00 in Hastings Technology Metals on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Hastings Technology Metals or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hastings Technology Metals vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Hastings Technology |
| Hyster Yale Materials |
Hastings Technology and Hyster-Yale Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hastings Technology and Hyster-Yale Materials
The main advantage of trading using opposite Hastings Technology and Hyster-Yale Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hastings Technology position performs unexpectedly, Hyster-Yale Materials 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 Hyster-Yale Materials will offset losses from the drop in Hyster-Yale Materials' long position.| Hastings Technology vs. BHP Group Limited | Hastings Technology vs. Rio Tinto Group | Hastings Technology vs. Vale SA | Hastings Technology vs. Vale SA |
| Hyster-Yale Materials vs. Ming Le Sports | Hyster-Yale Materials vs. Lion One Metals | Hyster-Yale Materials vs. VIAPLAY GROUP AB | Hyster-Yale Materials vs. Cars 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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