Correlation Between Hawkins and Springwater Special
Can any of the company-specific risk be diversified away by investing in both Hawkins and Springwater Special 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 Springwater Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Springwater Special Situations, you can compare the effects of market volatilities on Hawkins and Springwater Special 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 Springwater Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Springwater Special.
Diversification Opportunities for Hawkins and Springwater Special
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hawkins and Springwater is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Springwater Special Situations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Springwater Special 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 Springwater Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Springwater Special has no effect on the direction of Hawkins i.e., Hawkins and Springwater Special go up and down completely randomly.
Pair Corralation between Hawkins and Springwater Special
If you would invest 12,499 in Hawkins on September 14, 2024 and sell it today you would earn a total of 758.00 from holding Hawkins or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hawkins vs. Springwater Special Situations
Performance |
| Timeline |
| Hawkins |
| Springwater Special |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hawkins and Springwater Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Springwater Special
The main advantage of trading using opposite Hawkins and Springwater Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Springwater Special 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 Springwater Special will offset losses from the drop in Springwater Special's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Springwater Special vs. Vistra Energy Corp | Springwater Special vs. Antero Midstream Partners | Springwater Special vs. Atmos Energy | Springwater Special vs. Suburban Propane Partners |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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