Correlation Between Chijet and Hawkins
Can any of the company-specific risk be diversified away by investing in both Chijet 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 Chijet and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chijet Motor Company, and Hawkins, you can compare the effects of market volatilities on Chijet 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 Chijet with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chijet and Hawkins.
Diversification Opportunities for Chijet and Hawkins
Good diversification
The 3 months correlation between Chijet and Hawkins is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chijet Motor Company, and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Chijet 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 Chijet Motor Company, 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 Chijet i.e., Chijet and Hawkins go up and down completely randomly.
Pair Corralation between Chijet and Hawkins
Given the investment horizon of 90 days Chijet Motor Company, is expected to under-perform the Hawkins. In addition to that, Chijet is 2.39 times more volatile than Hawkins. It trades about -0.02 of its total potential returns per unit of risk. Hawkins is currently generating about 0.16 per unit of volatility. If you would invest 12,499 in Hawkins on September 14, 2024 and sell it today you would earn a total of 758.00 from holding Hawkins or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chijet Motor Company, vs. Hawkins
Performance |
| Timeline |
| Chijet Motor , |
| Hawkins |
Chijet and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chijet and Hawkins
The main advantage of trading using opposite Chijet and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chijet 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.| Chijet vs. Hawkins | Chijet vs. Udemy Inc | Chijet vs. Zane Interactive Publishing | Chijet vs. Mativ Holdings |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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