Correlation Between Hawkins and Aleris International
Can any of the company-specific risk be diversified away by investing in both Hawkins and Aleris International 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 Hawkins and Aleris International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Aleris International, you can compare the effects of market volatilities on Hawkins and Aleris International 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 Hawkins with a short position of Aleris International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Aleris International.
Diversification Opportunities for Hawkins and Aleris International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hawkins and Aleris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Aleris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aleris International and Hawkins 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 Hawkins are associated (or correlated) with Aleris International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aleris International has no effect on the direction of Hawkins i.e., Hawkins and Aleris International go up and down completely randomly.
Pair Corralation between Hawkins and Aleris International
If you would invest 10,608 in Hawkins on September 4, 2024 and sell it today you would earn a total of 3,118 from holding Hawkins or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hawkins vs. Aleris International
Performance |
| Timeline |
| Hawkins |
| Aleris International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hawkins and Aleris International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Aleris International
The main advantage of trading using opposite Hawkins and Aleris International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Aleris International 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 Aleris International will offset losses from the drop in Aleris International's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Aleris International vs. LENSAR Inc | Aleris International vs. CVR Partners LP | Aleris International vs. Flexible Solutions International | Aleris International vs. Hawkins |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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