Correlation Between Evertz Technologies and Hawkins
Can any of the company-specific risk be diversified away by investing in both Evertz Technologies 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 Evertz Technologies and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertz Technologies Limited and Hawkins, you can compare the effects of market volatilities on Evertz Technologies 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 Evertz Technologies with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and Hawkins.
Diversification Opportunities for Evertz Technologies and Hawkins
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evertz and Hawkins is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Evertz Technologies 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 Evertz Technologies 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 Evertz Technologies i.e., Evertz Technologies and Hawkins go up and down completely randomly.
Pair Corralation between Evertz Technologies and Hawkins
Assuming the 90 days horizon Evertz Technologies is expected to generate 3.74 times less return on investment than Hawkins. In addition to that, Evertz Technologies is 1.69 times more volatile than Hawkins. It trades about 0.02 of its total potential returns per unit of risk. Hawkins is currently generating about 0.12 per unit of volatility. If you would invest 3,817 in Hawkins on September 12, 2024 and sell it today you would earn a total of 9,435 from holding Hawkins or generate 247.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.92% |
| Values | Daily Returns |
Evertz Technologies Limited vs. Hawkins
Performance |
| Timeline |
| Evertz Technologies |
| Hawkins |
Evertz Technologies and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertz Technologies and Hawkins
The main advantage of trading using opposite Evertz Technologies and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertz Technologies 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.| Evertz Technologies vs. Boxlight Corp Class | Evertz Technologies vs. Siyata Mobile | Evertz Technologies vs. ClearOne |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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