Correlation Between Hurco Companies and FG Merger
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and FG Merger 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 FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and FG Merger Corp, you can compare the effects of market volatilities on Hurco Companies and FG Merger 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 FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and FG Merger.
Diversification Opportunities for Hurco Companies and FG Merger
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hurco and FGMCW is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger Corp 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 FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of Hurco Companies i.e., Hurco Companies and FG Merger go up and down completely randomly.
Pair Corralation between Hurco Companies and FG Merger
Given the investment horizon of 90 days Hurco Companies is expected to under-perform the FG Merger. But the stock apears to be less risky and, when comparing its historical volatility, Hurco Companies is 19.38 times less risky than FG Merger. The stock trades about -0.01 of its potential returns per unit of risk. The FG Merger Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5.00 in FG Merger Corp on September 14, 2024 and sell it today you would earn a total of 5.00 from holding FG Merger Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.38% |
| Values | Daily Returns |
Hurco Companies vs. FG Merger Corp
Performance |
| Timeline |
| Hurco Companies |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hurco Companies and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and FG Merger
The main advantage of trading using opposite Hurco Companies and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. China Yuchai International | Hurco Companies vs. Luxfer Holdings PLC | Hurco Companies vs. Omega Flex |
| FG Merger vs. Monster Beverage Corp | FG Merger vs. Oatly Group AB | FG Merger vs. High Performance Beverages | FG Merger vs. Hurco Companies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |