Correlation Between HP and GROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between HP Inc and GROUP 1 AUTOMOTIVE, you can compare the effects of market volatilities on HP and GROUP 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 HP with a short position of GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and GROUP.
Diversification Opportunities for HP and GROUP
Very good diversification
The 3 months correlation between HP and GROUP is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and GROUP 1 AUTOMOTIVE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GROUP 1 AUTOMOTIVE and HP 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 HP Inc are associated (or correlated) with GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GROUP 1 AUTOMOTIVE has no effect on the direction of HP i.e., HP and GROUP go up and down completely randomly.
Pair Corralation between HP and GROUP
Considering the 90-day investment horizon HP Inc is expected to generate 2.36 times more return on investment than GROUP. However, HP is 2.36 times more volatile than GROUP 1 AUTOMOTIVE. It trades about 0.01 of its potential returns per unit of risk. GROUP 1 AUTOMOTIVE is currently generating about -0.29 per unit of risk. If you would invest 3,552 in HP Inc on September 1, 2024 and sell it today you would lose (9.00) from holding HP Inc or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HP Inc vs. GROUP 1 AUTOMOTIVE
Performance |
| Timeline |
| HP Inc |
| GROUP 1 AUTOMOTIVE |
HP and GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and GROUP
The main advantage of trading using opposite HP and GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP position performs unexpectedly, GROUP 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 GROUP will offset losses from the drop in GROUP's long position.The idea behind HP Inc and GROUP 1 AUTOMOTIVE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |