Correlation Between Hawkins and Umpqua Holdings
Can any of the company-specific risk be diversified away by investing in both Hawkins and Umpqua Holdings 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 Umpqua Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Umpqua Holdings, you can compare the effects of market volatilities on Hawkins and Umpqua Holdings 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 Umpqua Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Umpqua Holdings.
Diversification Opportunities for Hawkins and Umpqua Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hawkins and Umpqua is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Umpqua Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umpqua Holdings 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 Umpqua Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umpqua Holdings has no effect on the direction of Hawkins i.e., Hawkins and Umpqua Holdings go up and down completely randomly.
Pair Corralation between Hawkins and Umpqua Holdings
If you would invest 12,649 in Hawkins on September 13, 2024 and sell it today you would earn a total of 724.00 from holding Hawkins or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hawkins vs. Umpqua Holdings
Performance |
| Timeline |
| Hawkins |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hawkins and Umpqua Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Umpqua Holdings
The main advantage of trading using opposite Hawkins and Umpqua Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Umpqua Holdings 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 Umpqua Holdings will offset losses from the drop in Umpqua Holdings' long position.| Hawkins vs. Perimeter Solutions SA | Hawkins vs. Kronos Worldwide | Hawkins vs. Sensient Technologies | Hawkins vs. Element Solutions |
| Umpqua Holdings vs. Cadence Design Systems | Umpqua Holdings vs. Sapiens International | Umpqua Holdings vs. Uber Technologies | Umpqua Holdings vs. Herc Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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