Correlation Between Hawkins and Crown Electrokinetics
Can any of the company-specific risk be diversified away by investing in both Hawkins and Crown Electrokinetics 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 Crown Electrokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Crown Electrokinetics Corp, you can compare the effects of market volatilities on Hawkins and Crown Electrokinetics 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 Crown Electrokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Crown Electrokinetics.
Diversification Opportunities for Hawkins and Crown Electrokinetics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hawkins and Crown is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Crown Electrokinetics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Electrokinetics 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 Crown Electrokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Electrokinetics has no effect on the direction of Hawkins i.e., Hawkins and Crown Electrokinetics go up and down completely randomly.
Pair Corralation between Hawkins and Crown Electrokinetics
Given the investment horizon of 90 days Hawkins is expected to generate 0.18 times more return on investment than Crown Electrokinetics. However, Hawkins is 5.45 times less risky than Crown Electrokinetics. It trades about -0.18 of its potential returns per unit of risk. Crown Electrokinetics Corp is currently generating about -0.28 per unit of risk. If you would invest 12,057 in Hawkins on November 3, 2024 and sell it today you would lose (1,366) from holding Hawkins or give up 11.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. Crown Electrokinetics Corp
Performance |
| Timeline |
| Hawkins |
| Crown Electrokinetics |
Hawkins and Crown Electrokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Crown Electrokinetics
The main advantage of trading using opposite Hawkins and Crown Electrokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Crown Electrokinetics 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 Crown Electrokinetics will offset losses from the drop in Crown Electrokinetics' long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Crown Electrokinetics vs. Coroware | Crown Electrokinetics vs. Loop Industries | Crown Electrokinetics vs. Hudson Technologies | Crown Electrokinetics vs. General Environmental Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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