Correlation Between Hubbell Incorporated and Strix Group
Can any of the company-specific risk be diversified away by investing in both Hubbell Incorporated and Strix Group 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 Incorporated and Strix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubbell Incorporated and Strix Group Plc, you can compare the effects of market volatilities on Hubbell Incorporated and Strix 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 Hubbell Incorporated with a short position of Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubbell Incorporated and Strix Group.
Diversification Opportunities for Hubbell Incorporated and Strix Group
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hubbell and Strix is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hubbell Incorporated and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc and Hubbell Incorporated 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 Incorporated are associated (or correlated) with Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of Hubbell Incorporated i.e., Hubbell Incorporated and Strix Group go up and down completely randomly.
Pair Corralation between Hubbell Incorporated and Strix Group
Assuming the 90 days trading horizon Hubbell Incorporated is expected to generate 0.87 times more return on investment than Strix Group. However, Hubbell Incorporated is 1.15 times less risky than Strix Group. It trades about 0.07 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.11 per unit of risk. If you would invest 41,200 in Hubbell Incorporated on August 24, 2024 and sell it today you would earn a total of 1,200 from holding Hubbell Incorporated or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubbell Incorporated vs. Strix Group Plc
Performance |
| Timeline |
| Hubbell Incorporated |
| Strix Group Plc |
Hubbell Incorporated and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubbell Incorporated and Strix Group
The main advantage of trading using opposite Hubbell Incorporated and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubbell Incorporated position performs unexpectedly, Strix 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 Strix Group will offset losses from the drop in Strix Group's long position.| Hubbell Incorporated vs. HomeToGo SE | Hubbell Incorporated vs. HK Electric Investments | Hubbell Incorporated vs. Taylor Morrison Home | Hubbell Incorporated vs. EAT WELL INVESTMENT |
| Strix Group vs. Sunny Optical Technology | Strix Group vs. Superior Plus Corp | Strix Group vs. Origin Agritech | Strix Group vs. SIVERS SEMICONDUCTORS AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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