Correlation Between Hubbell and Atkore International
Can any of the company-specific risk be diversified away by investing in both Hubbell and Atkore International 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 Hubbell and Atkore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubbell and Atkore International Group, you can compare the effects of market volatilities on Hubbell and Atkore International 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 Hubbell with a short position of Atkore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubbell and Atkore International.
Diversification Opportunities for Hubbell and Atkore International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubbell and Atkore is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hubbell and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International and Hubbell 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 Hubbell are associated (or correlated) with Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Hubbell i.e., Hubbell and Atkore International go up and down completely randomly.
Pair Corralation between Hubbell and Atkore International
Given the investment horizon of 90 days Hubbell is expected to generate 0.66 times more return on investment than Atkore International. However, Hubbell is 1.51 times less risky than Atkore International. It trades about 0.09 of its potential returns per unit of risk. Atkore International Group is currently generating about -0.06 per unit of risk. If you would invest 33,238 in Hubbell on August 28, 2024 and sell it today you would earn a total of 13,148 from holding Hubbell or generate 39.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubbell vs. Atkore International Group
Performance |
| Timeline |
| Hubbell |
| Atkore International |
Hubbell and Atkore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubbell and Atkore International
The main advantage of trading using opposite Hubbell and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubbell position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.| Hubbell vs. Advanced Energy Industries | Hubbell vs. Enersys | Hubbell vs. Acuity Brands | Hubbell vs. Kimball Electronics |
| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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