Correlation Between Hawkins and NEWELL
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By analyzing existing cross correlation between Hawkins and NEWELL BRANDS INC, you can compare the effects of market volatilities on Hawkins and NEWELL 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 NEWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and NEWELL.
Diversification Opportunities for Hawkins and NEWELL
Average diversification
The 3 months correlation between Hawkins and NEWELL is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and NEWELL BRANDS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL BRANDS INC 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 NEWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL BRANDS INC has no effect on the direction of Hawkins i.e., Hawkins and NEWELL go up and down completely randomly.
Pair Corralation between Hawkins and NEWELL
Given the investment horizon of 90 days Hawkins is expected to generate 1.78 times more return on investment than NEWELL. However, Hawkins is 1.78 times more volatile than NEWELL BRANDS INC. It trades about 0.14 of its potential returns per unit of risk. NEWELL BRANDS INC is currently generating about 0.04 per unit of risk. If you would invest 8,624 in Hawkins on September 12, 2024 and sell it today you would earn a total of 4,628 from holding Hawkins or generate 53.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.8% |
| Values | Daily Returns |
Hawkins vs. NEWELL BRANDS INC
Performance |
| Timeline |
| Hawkins |
| NEWELL BRANDS INC |
Hawkins and NEWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and NEWELL
The main advantage of trading using opposite Hawkins and NEWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, NEWELL 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 NEWELL will offset losses from the drop in NEWELL's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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