Correlation Between Hurco Companies and Enpro Industries
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Enpro Industries 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 Enpro Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Enpro Industries, you can compare the effects of market volatilities on Hurco Companies and Enpro Industries 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 Enpro Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Enpro Industries.
Diversification Opportunities for Hurco Companies and Enpro Industries
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hurco and Enpro is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Enpro Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enpro Industries 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 Enpro Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enpro Industries has no effect on the direction of Hurco Companies i.e., Hurco Companies and Enpro Industries go up and down completely randomly.
Pair Corralation between Hurco Companies and Enpro Industries
Given the investment horizon of 90 days Hurco Companies is expected to generate 1.29 times more return on investment than Enpro Industries. However, Hurco Companies is 1.29 times more volatile than Enpro Industries. It trades about 0.17 of its potential returns per unit of risk. Enpro Industries is currently generating about 0.11 per unit of risk. If you would invest 1,698 in Hurco Companies on August 26, 2024 and sell it today you would earn a total of 568.00 from holding Hurco Companies or generate 33.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Enpro Industries
Performance |
| Timeline |
| Hurco Companies |
| Enpro Industries |
Hurco Companies and Enpro Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Enpro Industries
The main advantage of trading using opposite Hurco Companies and Enpro Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Enpro Industries 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 Enpro Industries will offset losses from the drop in Enpro Industries' long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Enpro Industries vs. Helios Technologies | Enpro Industries vs. Omega Flex | Enpro Industries vs. Luxfer Holdings PLC | Enpro Industries 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |