Correlation Between Kronos Worldwide and Hawkins
Can any of the company-specific risk be diversified away by investing in both Kronos Worldwide and Hawkins 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 Kronos Worldwide and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Worldwide and Hawkins, you can compare the effects of market volatilities on Kronos Worldwide and Hawkins 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 Kronos Worldwide with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Worldwide and Hawkins.
Diversification Opportunities for Kronos Worldwide and Hawkins
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kronos and Hawkins is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Worldwide and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Kronos Worldwide 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 Kronos Worldwide are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Kronos Worldwide i.e., Kronos Worldwide and Hawkins go up and down completely randomly.
Pair Corralation between Kronos Worldwide and Hawkins
Considering the 90-day investment horizon Kronos Worldwide is expected to generate 10.38 times less return on investment than Hawkins. But when comparing it to its historical volatility, Kronos Worldwide is 1.3 times less risky than Hawkins. It trades about 0.02 of its potential returns per unit of risk. Hawkins is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,699 in Hawkins on August 30, 2024 and sell it today you would earn a total of 1,640 from holding Hawkins or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kronos Worldwide vs. Hawkins
Performance |
| Timeline |
| Kronos Worldwide |
| Hawkins |
Kronos Worldwide and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Worldwide and Hawkins
The main advantage of trading using opposite Kronos Worldwide and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Worldwide position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Kronos Worldwide vs. Oil Dri | Kronos Worldwide vs. Quaker Chemical | Kronos Worldwide vs. Ecovyst | Kronos Worldwide vs. Minerals Technologies |
| Hawkins vs. Perimeter Solutions SA | Hawkins vs. Kronos Worldwide | Hawkins vs. Sensient Technologies | Hawkins vs. Element Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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