Correlation Between Hour Loop and Powell Max
Can any of the company-specific risk be diversified away by investing in both Hour Loop and Powell Max 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 Hour Loop and Powell Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hour Loop and Powell Max Limited, you can compare the effects of market volatilities on Hour Loop and Powell Max 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 Hour Loop with a short position of Powell Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hour Loop and Powell Max.
Diversification Opportunities for Hour Loop and Powell Max
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hour and Powell is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hour Loop and Powell Max Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powell Max Limited and Hour Loop 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 Hour Loop are associated (or correlated) with Powell Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powell Max Limited has no effect on the direction of Hour Loop i.e., Hour Loop and Powell Max go up and down completely randomly.
Pair Corralation between Hour Loop and Powell Max
Given the investment horizon of 90 days Hour Loop is expected to generate 0.85 times more return on investment than Powell Max. However, Hour Loop is 1.18 times less risky than Powell Max. It trades about 0.0 of its potential returns per unit of risk. Powell Max Limited is currently generating about -0.04 per unit of risk. If you would invest 261.00 in Hour Loop on August 31, 2024 and sell it today you would lose (109.00) from holding Hour Loop or give up 41.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.97% |
| Values | Daily Returns |
Hour Loop vs. Powell Max Limited
Performance |
| Timeline |
| Hour Loop |
| Powell Max Limited |
Hour Loop and Powell Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hour Loop and Powell Max
The main advantage of trading using opposite Hour Loop and Powell Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hour Loop position performs unexpectedly, Powell Max 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 Powell Max will offset losses from the drop in Powell Max's long position.| Hour Loop vs. Qurate Retail Series | Hour Loop vs. iPower Inc | Hour Loop vs. MOGU Inc | Hour Loop vs. Qurate Retail |
| Powell Max vs. Star Equity Holdings | Powell Max vs. Prenetics Global | Powell Max vs. ICON PLC | Powell Max vs. iSpecimen |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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