Correlation Between Hudson Technologies and First Citizens
Can any of the company-specific risk be diversified away by investing in both Hudson Technologies and First Citizens 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 Hudson Technologies and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and The First Citizens, you can compare the effects of market volatilities on Hudson Technologies and First Citizens 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 Hudson Technologies with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and First Citizens.
Diversification Opportunities for Hudson Technologies and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hudson and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and First Citizens go up and down completely randomly.
Pair Corralation between Hudson Technologies and First Citizens
Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the First Citizens. In addition to that, Hudson Technologies is 1540.16 times more volatile than The First Citizens. It trades about -0.09 of its total potential returns per unit of risk. The First Citizens is currently generating about 0.11 per unit of volatility. If you would invest 6,539 in The First Citizens on September 12, 2024 and sell it today you would earn a total of 1.00 from holding The First Citizens or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.42% |
| Values | Daily Returns |
Hudson Technologies vs. The First Citizens
Performance |
| Timeline |
| Hudson Technologies |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hudson Technologies and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Technologies and First Citizens
The main advantage of trading using opposite Hudson Technologies and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
| First Citizens vs. NL Industries | First Citizens vs. Ryanair Holdings PLC | First Citizens vs. Yuexiu Transport Infrastructure | First Citizens vs. Hudson Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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