Correlation Between Hawkins and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Hawkins and Capital Clean 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 Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Capital Clean Energy, you can compare the effects of market volatilities on Hawkins and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Capital Clean.
Diversification Opportunities for Hawkins and Capital Clean
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hawkins and Capital is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Hawkins i.e., Hawkins and Capital Clean go up and down completely randomly.
Pair Corralation between Hawkins and Capital Clean
Given the investment horizon of 90 days Hawkins is expected to under-perform the Capital Clean. In addition to that, Hawkins is 2.19 times more volatile than Capital Clean Energy. It trades about -0.29 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about -0.05 per unit of volatility. If you would invest 1,860 in Capital Clean Energy on October 14, 2024 and sell it today you would lose (27.00) from holding Capital Clean Energy or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. Capital Clean Energy
Performance |
| Timeline |
| Hawkins |
| Capital Clean Energy |
Hawkins and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Capital Clean
The main advantage of trading using opposite Hawkins and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Capital Clean vs. JetBlue Airways Corp | Capital Clean vs. Singapore Airlines | Capital Clean vs. Asure Software | Capital Clean vs. Uber Technologies |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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