Correlation Between Hubbell and Stardust Power
Can any of the company-specific risk be diversified away by investing in both Hubbell and Stardust Power 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 Stardust Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubbell and Stardust Power, you can compare the effects of market volatilities on Hubbell and Stardust Power 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 Stardust Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubbell and Stardust Power.
Diversification Opportunities for Hubbell and Stardust Power
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubbell and Stardust is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hubbell and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power 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 Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Hubbell i.e., Hubbell and Stardust Power go up and down completely randomly.
Pair Corralation between Hubbell and Stardust Power
Given the investment horizon of 90 days Hubbell is expected to generate 0.27 times more return on investment than Stardust Power. However, Hubbell is 3.66 times less risky than Stardust Power. It trades about 0.07 of its potential returns per unit of risk. Stardust Power is currently generating about -0.22 per unit of risk. If you would invest 44,967 in Hubbell on August 27, 2024 and sell it today you would earn a total of 1,419 from holding Hubbell or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Hubbell vs. Stardust Power
Performance |
| Timeline |
| Hubbell |
| Stardust Power |
Hubbell and Stardust Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubbell and Stardust Power
The main advantage of trading using opposite Hubbell and Stardust Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubbell position performs unexpectedly, Stardust Power 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 Stardust Power will offset losses from the drop in Stardust Power's long position.| Hubbell vs. Advanced Energy Industries | Hubbell vs. Enersys | Hubbell vs. Acuity Brands | Hubbell vs. Kimball Electronics |
| Stardust Power vs. Bloom Energy Corp | Stardust Power vs. Electrovaya Common Shares | Stardust Power vs. Enovix Corp | Stardust Power vs. Eos Energy Enterprises |
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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