Correlation Between Hayward Holdings and FREYR Battery
Can any of the company-specific risk be diversified away by investing in both Hayward Holdings and FREYR Battery 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 FREYR Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hayward Holdings and FREYR Battery SA, you can compare the effects of market volatilities on Hayward Holdings and FREYR Battery 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 FREYR Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hayward Holdings and FREYR Battery.
Diversification Opportunities for Hayward Holdings and FREYR Battery
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hayward and FREYR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hayward Holdings and FREYR Battery SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREYR Battery SA 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 FREYR Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREYR Battery SA has no effect on the direction of Hayward Holdings i.e., Hayward Holdings and FREYR Battery go up and down completely randomly.
Pair Corralation between Hayward Holdings and FREYR Battery
Given the investment horizon of 90 days Hayward Holdings is expected to generate 0.38 times more return on investment than FREYR Battery. However, Hayward Holdings is 2.62 times less risky than FREYR Battery. It trades about 0.06 of its potential returns per unit of risk. FREYR Battery SA is currently generating about -0.02 per unit of risk. If you would invest 937.00 in Hayward Holdings on August 26, 2024 and sell it today you would earn a total of 669.00 from holding Hayward Holdings or generate 71.4% 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. FREYR Battery SA
Performance |
| Timeline |
| Hayward Holdings |
| FREYR Battery SA |
Hayward Holdings and FREYR Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hayward Holdings and FREYR Battery
The main advantage of trading using opposite Hayward Holdings and FREYR Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hayward Holdings position performs unexpectedly, FREYR Battery 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 FREYR Battery will offset losses from the drop in FREYR Battery's long position.| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
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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