Correlation Between Hurco Companies and Hawkins
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Hawkins 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 Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Hawkins, you can compare the effects of market volatilities on Hurco Companies and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Hawkins.
Diversification Opportunities for Hurco Companies and Hawkins
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hurco and Hawkins is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Hurco Companies i.e., Hurco Companies and Hawkins go up and down completely randomly.
Pair Corralation between Hurco Companies and Hawkins
Given the investment horizon of 90 days Hurco Companies is expected to generate 0.77 times more return on investment than Hawkins. However, Hurco Companies is 1.3 times less risky than Hawkins. It trades about 0.23 of its potential returns per unit of risk. Hawkins is currently generating about 0.12 per unit of risk. If you would invest 2,011 in Hurco Companies on August 25, 2024 and sell it today you would earn a total of 255.00 from holding Hurco Companies or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Hawkins
Performance |
| Timeline |
| Hurco Companies |
| Hawkins |
Hurco Companies and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Hawkins
The main advantage of trading using opposite Hurco Companies and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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