Correlation Between Hayward Holdings and Ads Tec
Can any of the company-specific risk be diversified away by investing in both Hayward Holdings and Ads Tec 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 Hayward Holdings and Ads Tec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hayward Holdings and Ads Tec Energy, you can compare the effects of market volatilities on Hayward Holdings and Ads Tec 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 Hayward Holdings with a short position of Ads Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hayward Holdings and Ads Tec.
Diversification Opportunities for Hayward Holdings and Ads Tec
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hayward and Ads is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hayward Holdings and Ads Tec Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ads Tec Energy and Hayward Holdings 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 Hayward Holdings are associated (or correlated) with Ads Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ads Tec Energy has no effect on the direction of Hayward Holdings i.e., Hayward Holdings and Ads Tec go up and down completely randomly.
Pair Corralation between Hayward Holdings and Ads Tec
Given the investment horizon of 90 days Hayward Holdings is expected to generate 4.4 times less return on investment than Ads Tec. But when comparing it to its historical volatility, Hayward Holdings is 1.6 times less risky than Ads Tec. It trades about 0.04 of its potential returns per unit of risk. Ads Tec Energy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 264.00 in Ads Tec Energy on August 24, 2024 and sell it today you would earn a total of 1,106 from holding Ads Tec Energy or generate 418.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hayward Holdings vs. Ads Tec Energy
Performance |
| Timeline |
| Hayward Holdings |
| Ads Tec Energy |
Hayward Holdings and Ads Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hayward Holdings and Ads Tec
The main advantage of trading using opposite Hayward Holdings and Ads Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hayward Holdings position performs unexpectedly, Ads Tec 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 Ads Tec will offset losses from the drop in Ads Tec's long position.| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
| Ads Tec vs. Espey Mfg Electronics | Ads Tec vs. NeoVolta Warrant | Ads Tec vs. Kimball Electronics | Ads Tec vs. Hayward Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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