Correlation Between Femasys and Hawkins
Can any of the company-specific risk be diversified away by investing in both Femasys 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 Femasys and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Hawkins, you can compare the effects of market volatilities on Femasys 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 Femasys with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Hawkins.
Diversification Opportunities for Femasys and Hawkins
Very good diversification
The 3 months correlation between Femasys and Hawkins is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Femasys 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 Femasys 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 Femasys i.e., Femasys and Hawkins go up and down completely randomly.
Pair Corralation between Femasys and Hawkins
Given the investment horizon of 90 days Femasys is expected to under-perform the Hawkins. In addition to that, Femasys is 1.46 times more volatile than Hawkins. It trades about -0.18 of its total potential returns per unit of risk. Hawkins is currently generating about 0.2 per unit of volatility. If you would invest 11,675 in Hawkins on August 29, 2024 and sell it today you would earn a total of 1,725 from holding Hawkins or generate 14.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Hawkins
Performance |
| Timeline |
| Femasys |
| Hawkins |
Femasys and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Hawkins
The main advantage of trading using opposite Femasys and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys 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.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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