Correlation Between Hawkins and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Hawkins and FactSet Research 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 FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and FactSet Research Systems, you can compare the effects of market volatilities on Hawkins and FactSet Research 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 FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and FactSet Research.
Diversification Opportunities for Hawkins and FactSet Research
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hawkins and FactSet is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems 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 FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Hawkins i.e., Hawkins and FactSet Research go up and down completely randomly.
Pair Corralation between Hawkins and FactSet Research
Given the investment horizon of 90 days Hawkins is expected to under-perform the FactSet Research. In addition to that, Hawkins is 2.21 times more volatile than FactSet Research Systems. It trades about -0.33 of its total potential returns per unit of risk. FactSet Research Systems is currently generating about -0.28 per unit of volatility. If you would invest 48,861 in FactSet Research Systems on October 13, 2024 and sell it today you would lose (3,559) from holding FactSet Research Systems or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hawkins vs. FactSet Research Systems
Performance |
| Timeline |
| Hawkins |
| FactSet Research Systems |
Hawkins and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and FactSet Research
The main advantage of trading using opposite Hawkins and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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