Correlation Between Hollysys Automation and Hubbell
Can any of the company-specific risk be diversified away by investing in both Hollysys Automation and Hubbell 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 Hollysys Automation and Hubbell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollysys Automation Technologies and Hubbell, you can compare the effects of market volatilities on Hollysys Automation and Hubbell 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 Hollysys Automation with a short position of Hubbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollysys Automation and Hubbell.
Diversification Opportunities for Hollysys Automation and Hubbell
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hollysys and Hubbell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hollysys Automation Technologi and Hubbell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell and Hollysys Automation 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 Hollysys Automation Technologies are associated (or correlated) with Hubbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell has no effect on the direction of Hollysys Automation i.e., Hollysys Automation and Hubbell go up and down completely randomly.
Pair Corralation between Hollysys Automation and Hubbell
If you would invest 32,239 in Hubbell on November 9, 2024 and sell it today you would earn a total of 7,260 from holding Hubbell or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hollysys Automation Technologi vs. Hubbell
Performance |
| Timeline |
| Hollysys Automation |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Hubbell |
Hollysys Automation and Hubbell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollysys Automation and Hubbell
The main advantage of trading using opposite Hollysys Automation and Hubbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollysys Automation position performs unexpectedly, Hubbell 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 Hubbell will offset losses from the drop in Hubbell's long position.| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
| Hubbell vs. Advanced Energy Industries | Hubbell vs. Enersys | Hubbell vs. Acuity Brands | Hubbell vs. Kimball Electronics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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