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 PLC, 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
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hayward and ADS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hayward Holdings and ADS TEC ENERGY PLC 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 21.57 times less return on investment than ADS TEC. But when comparing it to its historical volatility, Hayward Holdings is 3.63 times less risky than ADS TEC. It trades about 0.03 of its potential returns per unit of risk. ADS TEC ENERGY PLC is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 395.00 in ADS TEC ENERGY PLC on November 2, 2024 and sell it today you would earn a total of 55.00 from holding ADS TEC ENERGY PLC or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hayward Holdings vs. ADS TEC ENERGY PLC
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 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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