Correlation Between Hurco Companies and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Canada Goose 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 Canada Goose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Canada Goose Holdings, you can compare the effects of market volatilities on Hurco Companies and Canada Goose 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 Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Canada Goose.
Diversification Opportunities for Hurco Companies and Canada Goose
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hurco and Canada is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings 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 Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Hurco Companies i.e., Hurco Companies and Canada Goose go up and down completely randomly.
Pair Corralation between Hurco Companies and Canada Goose
Given the investment horizon of 90 days Hurco Companies is expected to generate 1.35 times less return on investment than Canada Goose. In addition to that, Hurco Companies is 1.12 times more volatile than Canada Goose Holdings. It trades about 0.14 of its total potential returns per unit of risk. Canada Goose Holdings is currently generating about 0.21 per unit of volatility. If you would invest 1,003 in Canada Goose Holdings on November 1, 2024 and sell it today you would earn a total of 126.00 from holding Canada Goose Holdings or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hurco Companies vs. Canada Goose Holdings
Performance |
| Timeline |
| Hurco Companies |
| Canada Goose Holdings |
Hurco Companies and Canada Goose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Canada Goose
The main advantage of trading using opposite Hurco Companies and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Canada Goose vs. PVH Corp | Canada Goose vs. VF Corporation | Canada Goose vs. Levi Strauss Co | Canada Goose vs. Under Armour A |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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