Correlation Between Hillman Solutions and Acme United
Can any of the company-specific risk be diversified away by investing in both Hillman Solutions and Acme United 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 Hillman Solutions and Acme United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hillman Solutions Corp and Acme United, you can compare the effects of market volatilities on Hillman Solutions and Acme United 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 Hillman Solutions with a short position of Acme United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillman Solutions and Acme United.
Diversification Opportunities for Hillman Solutions and Acme United
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hillman and Acme is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hillman Solutions Corp and Acme United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acme United and Hillman Solutions 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 Hillman Solutions Corp are associated (or correlated) with Acme United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acme United has no effect on the direction of Hillman Solutions i.e., Hillman Solutions and Acme United go up and down completely randomly.
Pair Corralation between Hillman Solutions and Acme United
Given the investment horizon of 90 days Hillman Solutions is expected to generate 1.57 times less return on investment than Acme United. But when comparing it to its historical volatility, Hillman Solutions Corp is 1.19 times less risky than Acme United. It trades about 0.22 of its potential returns per unit of risk. Acme United is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,970 in Acme United on September 1, 2024 and sell it today you would earn a total of 481.00 from holding Acme United or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillman Solutions Corp vs. Acme United
Performance |
| Timeline |
| Hillman Solutions Corp |
| Acme United |
Hillman Solutions and Acme United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillman Solutions and Acme United
The main advantage of trading using opposite Hillman Solutions and Acme United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillman Solutions position performs unexpectedly, Acme United 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 Acme United will offset losses from the drop in Acme United's long position.| Hillman Solutions vs. Kennametal | Hillman Solutions vs. AB SKF | Hillman Solutions vs. Eastern Co | Hillman Solutions vs. Timken Company |
| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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