Correlation Between Haymaker Acquisition and Trupanion
Can any of the company-specific risk be diversified away by investing in both Haymaker Acquisition and Trupanion 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 Haymaker Acquisition and Trupanion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haymaker Acquisition Corp and Trupanion, you can compare the effects of market volatilities on Haymaker Acquisition and Trupanion 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 Haymaker Acquisition with a short position of Trupanion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haymaker Acquisition and Trupanion.
Diversification Opportunities for Haymaker Acquisition and Trupanion
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haymaker and Trupanion is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Haymaker Acquisition Corp and Trupanion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trupanion and Haymaker Acquisition 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 Haymaker Acquisition Corp are associated (or correlated) with Trupanion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trupanion has no effect on the direction of Haymaker Acquisition i.e., Haymaker Acquisition and Trupanion go up and down completely randomly.
Pair Corralation between Haymaker Acquisition and Trupanion
Given the investment horizon of 90 days Haymaker Acquisition is expected to generate 17.88 times less return on investment than Trupanion. But when comparing it to its historical volatility, Haymaker Acquisition Corp is 18.62 times less risky than Trupanion. It trades about 0.07 of its potential returns per unit of risk. Trupanion is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,520 in Trupanion on September 12, 2024 and sell it today you would earn a total of 2,879 from holding Trupanion or generate 114.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.35% |
| Values | Daily Returns |
Haymaker Acquisition Corp vs. Trupanion
Performance |
| Timeline |
| Haymaker Acquisition Corp |
| Trupanion |
Haymaker Acquisition and Trupanion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haymaker Acquisition and Trupanion
The main advantage of trading using opposite Haymaker Acquisition and Trupanion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haymaker Acquisition position performs unexpectedly, Trupanion 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 Trupanion will offset losses from the drop in Trupanion's long position.| Haymaker Acquisition vs. Trupanion | Haymaker Acquisition vs. Assurant | Haymaker Acquisition vs. Boston Beer | Haymaker Acquisition vs. NI Holdings |
| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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