Correlation Between Maytronics and Hilan
Can any of the company-specific risk be diversified away by investing in both Maytronics and Hilan 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 Maytronics and Hilan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maytronics and Hilan, you can compare the effects of market volatilities on Maytronics and Hilan 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 Maytronics with a short position of Hilan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maytronics and Hilan.
Diversification Opportunities for Maytronics and Hilan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maytronics and Hilan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Maytronics and Hilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilan and Maytronics 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 Maytronics are associated (or correlated) with Hilan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilan has no effect on the direction of Maytronics i.e., Maytronics and Hilan go up and down completely randomly.
Pair Corralation between Maytronics and Hilan
Assuming the 90 days trading horizon Maytronics is expected to generate 2.58 times more return on investment than Hilan. However, Maytronics is 2.58 times more volatile than Hilan. It trades about 0.02 of its potential returns per unit of risk. Hilan is currently generating about 0.05 per unit of risk. If you would invest 106,947 in Maytronics on August 25, 2024 and sell it today you would earn a total of 53.00 from holding Maytronics or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maytronics vs. Hilan
Performance |
| Timeline |
| Maytronics |
| Hilan |
Maytronics and Hilan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maytronics and Hilan
The main advantage of trading using opposite Maytronics and Hilan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maytronics position performs unexpectedly, Hilan 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 Hilan will offset losses from the drop in Hilan's long position.| Maytronics vs. Matrix | Maytronics vs. Elbit Systems | Maytronics vs. Enlight Renewable Energy | Maytronics vs. Hilan |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |