Correlation Between ACG Metals and Hawkins
Can any of the company-specific risk be diversified away by investing in both ACG Metals and Hawkins 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 ACG Metals and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and Hawkins, you can compare the effects of market volatilities on ACG Metals and Hawkins 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 ACG Metals with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and Hawkins.
Diversification Opportunities for ACG Metals and Hawkins
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and Hawkins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and ACG Metals 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 ACG Metals Limited are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of ACG Metals i.e., ACG Metals and Hawkins go up and down completely randomly.
Pair Corralation between ACG Metals and Hawkins
If you would invest 11,675 in Hawkins on August 28, 2024 and sell it today you would earn a total of 1,872 from holding Hawkins or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. Hawkins
Performance |
| Timeline |
| ACG Metals Limited |
| Hawkins |
ACG Metals and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and Hawkins
The main advantage of trading using opposite ACG Metals and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| ACG Metals vs. Legacy Education | ACG Metals vs. NVIDIA | ACG Metals vs. Apple Inc | ACG Metals vs. Microsoft |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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