Correlation Between Hurco Companies and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Edgewell Personal 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 Hurco Companies and Edgewell Personal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Edgewell Personal Care, you can compare the effects of market volatilities on Hurco Companies and Edgewell Personal 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 Hurco Companies with a short position of Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Edgewell Personal.
Diversification Opportunities for Hurco Companies and Edgewell Personal
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hurco and Edgewell is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care and Hurco Companies 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 Hurco Companies are associated (or correlated) with Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Hurco Companies i.e., Hurco Companies and Edgewell Personal go up and down completely randomly.
Pair Corralation between Hurco Companies and Edgewell Personal
Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Edgewell Personal. But the stock apears to be less risky and, when comparing its historical volatility, Hurco Companies is 1.27 times less risky than Edgewell Personal. The stock trades about -0.41 of its potential returns per unit of risk. The Edgewell Personal Care is currently generating about -0.31 of returns per unit of risk over similar time horizon. If you would invest 3,173 in Edgewell Personal Care on January 10, 2025 and sell it today you would lose (429.00) from holding Edgewell Personal Care or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Edgewell Personal Care
Performance |
| Timeline |
| Hurco Companies |
| Edgewell Personal Care |
Hurco Companies and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Edgewell Personal
The main advantage of trading using opposite Hurco Companies and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Edgewell Personal vs. Mannatech Incorporated | Edgewell Personal vs. Inter Parfums | Edgewell Personal vs. Nu Skin Enterprises | Edgewell Personal vs. Helen of Troy |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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