Correlation Between Hillman Solutions and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Hillman Solutions and 360 Finance 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 360 Finance 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 360 Finance, you can compare the effects of market volatilities on Hillman Solutions and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillman Solutions and 360 Finance.
Diversification Opportunities for Hillman Solutions and 360 Finance
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hillman and 360 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hillman Solutions Corp and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Hillman Solutions i.e., Hillman Solutions and 360 Finance go up and down completely randomly.
Pair Corralation between Hillman Solutions and 360 Finance
Given the investment horizon of 90 days Hillman Solutions Corp is expected to under-perform the 360 Finance. But the stock apears to be less risky and, when comparing its historical volatility, Hillman Solutions Corp is 1.39 times less risky than 360 Finance. The stock trades about -0.14 of its potential returns per unit of risk. The 360 Finance is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,385 in 360 Finance on October 26, 2024 and sell it today you would earn a total of 609.50 from holding 360 Finance or generate 18.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillman Solutions Corp vs. 360 Finance
Performance |
| Timeline |
| Hillman Solutions Corp |
| 360 Finance |
Hillman Solutions and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillman Solutions and 360 Finance
The main advantage of trading using opposite Hillman Solutions and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillman Solutions position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Hillman Solutions vs. Kennametal | Hillman Solutions vs. AB SKF | Hillman Solutions vs. Eastern Co | Hillman Solutions vs. Timken Company |
| 360 Finance vs. Freedom Holding Corp | 360 Finance vs. Procter Gamble | 360 Finance vs. PennantPark Floating Rate | 360 Finance vs. Hillman Solutions 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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