Correlation Between Corning Incorporated and Hubbell Incorporated
Can any of the company-specific risk be diversified away by investing in both Corning Incorporated and Hubbell Incorporated 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 Corning Incorporated and Hubbell Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corning Incorporated and Hubbell Incorporated, you can compare the effects of market volatilities on Corning Incorporated and Hubbell Incorporated 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 Corning Incorporated with a short position of Hubbell Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corning Incorporated and Hubbell Incorporated.
Diversification Opportunities for Corning Incorporated and Hubbell Incorporated
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Corning and Hubbell is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and Hubbell Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell Incorporated and Corning Incorporated 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 Corning Incorporated are associated (or correlated) with Hubbell Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell Incorporated has no effect on the direction of Corning Incorporated i.e., Corning Incorporated and Hubbell Incorporated go up and down completely randomly.
Pair Corralation between Corning Incorporated and Hubbell Incorporated
Assuming the 90 days horizon Corning Incorporated is expected to generate 0.95 times more return on investment than Hubbell Incorporated. However, Corning Incorporated is 1.05 times less risky than Hubbell Incorporated. It trades about 0.08 of its potential returns per unit of risk. Hubbell Incorporated is currently generating about 0.07 per unit of risk. If you would invest 2,808 in Corning Incorporated on August 31, 2024 and sell it today you would earn a total of 1,752 from holding Corning Incorporated or generate 62.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corning Incorporated vs. Hubbell Incorporated
Performance |
| Timeline |
| Corning Incorporated |
| Hubbell Incorporated |
Corning Incorporated and Hubbell Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corning Incorporated and Hubbell Incorporated
The main advantage of trading using opposite Corning Incorporated and Hubbell Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated position performs unexpectedly, Hubbell Incorporated 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 Hubbell Incorporated will offset losses from the drop in Hubbell Incorporated's long position.| Corning Incorporated vs. Salesforce | Corning Incorporated vs. SIDETRADE EO 1 | Corning Incorporated vs. Fast Retailing Co | Corning Incorporated vs. ELMOS SEMICONDUCTOR |
| Hubbell Incorporated vs. United Airlines Holdings | Hubbell Incorporated vs. Monster Beverage Corp | Hubbell Incorporated vs. MCEWEN MINING INC | Hubbell Incorporated vs. Molson Coors Beverage |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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