Correlation Between Hyster-Yale Materials and Hastings Technology
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and Hastings Technology 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 Hyster-Yale Materials and Hastings Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Hastings Technology Metals, you can compare the effects of market volatilities on Hyster-Yale Materials and Hastings Technology 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 Hyster-Yale Materials with a short position of Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Hastings Technology.
Diversification Opportunities for Hyster-Yale Materials and Hastings Technology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyster-Yale and Hastings is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology and Hyster-Yale Materials 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 Hyster Yale Materials Handling are associated (or correlated) with Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and Hastings Technology go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Hastings Technology
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the Hastings Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 2.67 times less risky than Hastings Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Hastings Technology Metals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Hastings Technology Metals on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Hastings Technology Metals or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Hastings Technology Metals
Performance |
| Timeline |
| Hyster Yale Materials |
| Hastings Technology |
Hyster-Yale Materials and Hastings Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Hastings Technology
The main advantage of trading using opposite Hyster-Yale Materials and Hastings Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, Hastings Technology 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 Hastings Technology will offset losses from the drop in Hastings Technology's long position.| Hyster-Yale Materials vs. Ming Le Sports | Hyster-Yale Materials vs. Lion One Metals | Hyster-Yale Materials vs. VIAPLAY GROUP AB | Hyster-Yale Materials vs. Cars Inc |
| Hastings Technology vs. BHP Group Limited | Hastings Technology vs. Rio Tinto Group | Hastings Technology vs. Vale SA | Hastings Technology vs. Vale SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |