Correlation Between Hurco Companies and Global Technology
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Global Technology 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 Global Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Global Technology Acquisition, you can compare the effects of market volatilities on Hurco Companies and Global Technology 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 Global Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Global Technology.
Diversification Opportunities for Hurco Companies and Global Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hurco and Global is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Global Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Technology 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 Global Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Technology has no effect on the direction of Hurco Companies i.e., Hurco Companies and Global Technology go up and down completely randomly.
Pair Corralation between Hurco Companies and Global Technology
Given the investment horizon of 90 days Hurco Companies is expected to generate 2.46 times less return on investment than Global Technology. In addition to that, Hurco Companies is 2.46 times more volatile than Global Technology Acquisition. It trades about 0.01 of its total potential returns per unit of risk. Global Technology Acquisition is currently generating about 0.03 per unit of volatility. If you would invest 1,020 in Global Technology Acquisition on September 5, 2024 and sell it today you would earn a total of 127.00 from holding Global Technology Acquisition or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.94% |
| Values | Daily Returns |
Hurco Companies vs. Global Technology Acquisition
Performance |
| Timeline |
| Hurco Companies |
| Global Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Hurco Companies and Global Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Global Technology
The main advantage of trading using opposite Hurco Companies and Global Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Global Technology 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 Global Technology will offset losses from the drop in Global Technology's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Global Technology vs. Aegon NV ADR | Global Technology vs. Hurco Companies | Global Technology vs. Ecoloclean Industrs | Global Technology vs. ChampionX |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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