Correlation Between Hurco Companies and CREF Inflation
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and CREF Inflation 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 CREF Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and CREF Inflation Linked Bond, you can compare the effects of market volatilities on Hurco Companies and CREF Inflation 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 CREF Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and CREF Inflation.
Diversification Opportunities for Hurco Companies and CREF Inflation
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hurco and CREF is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and CREF Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREF Inflation Linked 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 CREF Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREF Inflation Linked has no effect on the direction of Hurco Companies i.e., Hurco Companies and CREF Inflation go up and down completely randomly.
Pair Corralation between Hurco Companies and CREF Inflation
Given the investment horizon of 90 days Hurco Companies is expected to generate 14.33 times more return on investment than CREF Inflation. However, Hurco Companies is 14.33 times more volatile than CREF Inflation Linked Bond. It trades about 0.1 of its potential returns per unit of risk. CREF Inflation Linked Bond is currently generating about 0.15 per unit of risk. If you would invest 1,742 in Hurco Companies on September 5, 2024 and sell it today you would earn a total of 543.00 from holding Hurco Companies or generate 31.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Hurco Companies vs. CREF Inflation Linked Bond
Performance |
| Timeline |
| Hurco Companies |
| CREF Inflation Linked |
Hurco Companies and CREF Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and CREF Inflation
The main advantage of trading using opposite Hurco Companies and CREF Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, CREF Inflation 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 CREF Inflation will offset losses from the drop in CREF Inflation's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| CREF Inflation vs. Pekin Life Insurance | CREF Inflation vs. Highway Holdings Limited | CREF Inflation vs. Hurco Companies | CREF Inflation vs. The Hanover Insurance |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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