Correlation Between Hamilton Beach and Richelieu Hardware
Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and Richelieu Hardware 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 Richelieu Hardware 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 Richelieu Hardware, you can compare the effects of market volatilities on Hamilton Beach and Richelieu Hardware 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 Richelieu Hardware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Richelieu Hardware.
Diversification Opportunities for Hamilton Beach and Richelieu Hardware
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Richelieu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and Richelieu Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richelieu Hardware 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 Richelieu Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richelieu Hardware has no effect on the direction of Hamilton Beach i.e., Hamilton Beach and Richelieu Hardware go up and down completely randomly.
Pair Corralation between Hamilton Beach and Richelieu Hardware
Considering the 90-day investment horizon Hamilton Beach Brands is expected to under-perform the Richelieu Hardware. In addition to that, Hamilton Beach is 2.13 times more volatile than Richelieu Hardware. It trades about -0.32 of its total potential returns per unit of risk. Richelieu Hardware is currently generating about 0.25 per unit of volatility. If you would invest 2,637 in Richelieu Hardware on September 15, 2024 and sell it today you would earn a total of 122.00 from holding Richelieu Hardware or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hamilton Beach Brands vs. Richelieu Hardware
Performance |
| Timeline |
| Hamilton Beach Brands |
| Richelieu Hardware |
Hamilton Beach and Richelieu Hardware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Beach and Richelieu Hardware
The main advantage of trading using opposite Hamilton Beach and Richelieu Hardware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach position performs unexpectedly, Richelieu Hardware 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 Richelieu Hardware will offset losses from the drop in Richelieu Hardware's long position.| Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. Crown Crafts | Hamilton Beach vs. Bassett Furniture Industries |
| Richelieu Hardware vs. Kewaunee Scientific | Richelieu Hardware vs. Hamilton Beach Brands | Richelieu Hardware vs. Mohawk Industries | Richelieu Hardware vs. Whirlpool |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |