Correlation Between Bolt Projects and Hawkins
Can any of the company-specific risk be diversified away by investing in both Bolt Projects 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 Bolt Projects and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Projects Holdings, and Hawkins, you can compare the effects of market volatilities on Bolt Projects 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 Bolt Projects with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Projects and Hawkins.
Diversification Opportunities for Bolt Projects and Hawkins
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bolt and Hawkins is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Projects Holdings, and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Bolt Projects 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 Bolt Projects Holdings, 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 Bolt Projects i.e., Bolt Projects and Hawkins go up and down completely randomly.
Pair Corralation between Bolt Projects and Hawkins
Assuming the 90 days horizon Bolt Projects Holdings, is expected to generate 22.28 times more return on investment than Hawkins. However, Bolt Projects is 22.28 times more volatile than Hawkins. It trades about 0.07 of its potential returns per unit of risk. Hawkins is currently generating about 0.09 per unit of risk. If you would invest 20.00 in Bolt Projects Holdings, on November 2, 2024 and sell it today you would lose (18.19) from holding Bolt Projects Holdings, or give up 90.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.38% |
| Values | Daily Returns |
Bolt Projects Holdings, vs. Hawkins
Performance |
| Timeline |
| Bolt Projects Holdings, |
| Hawkins |
Bolt Projects and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Projects and Hawkins
The main advantage of trading using opposite Bolt Projects and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Projects 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.| Bolt Projects vs. Wabash National | Bolt Projects vs. Lithia Motors | Bolt Projects vs. Grocery Outlet Holding | Bolt Projects vs. CDW Corp |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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