Correlation Between Hamilton Beach and Traeger
Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and Traeger 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 Hamilton Beach and Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Beach Brands and Traeger, you can compare the effects of market volatilities on Hamilton Beach and Traeger 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 Hamilton Beach with a short position of Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Traeger.
Diversification Opportunities for Hamilton Beach and Traeger
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Traeger is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Hamilton Beach 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 Hamilton Beach Brands are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Hamilton Beach i.e., Hamilton Beach and Traeger go up and down completely randomly.
Pair Corralation between Hamilton Beach and Traeger
Considering the 90-day investment horizon Hamilton Beach Brands is expected to generate 1.18 times more return on investment than Traeger. However, Hamilton Beach is 1.18 times more volatile than Traeger. It trades about 0.12 of its potential returns per unit of risk. Traeger is currently generating about 0.1 per unit of risk. If you would invest 1,654 in Hamilton Beach Brands on October 24, 2024 and sell it today you would earn a total of 91.00 from holding Hamilton Beach Brands or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Beach Brands vs. Traeger
Performance |
| Timeline |
| Hamilton Beach Brands |
| Traeger |
Hamilton Beach and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Beach and Traeger
The main advantage of trading using opposite Hamilton Beach and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger's long position.| Hamilton Beach vs. Bassett Furniture Industries | Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. La Z Boy Incorporated |
| Traeger vs. Sleep Number Corp | Traeger vs. Tempur Sealy International | Traeger vs. The Lovesac | Traeger vs. MillerKnoll |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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