Correlation Between Proficient Auto and Hawkins
Can any of the company-specific risk be diversified away by investing in both Proficient Auto 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 Proficient Auto and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and Hawkins, you can compare the effects of market volatilities on Proficient Auto 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 Proficient Auto with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Hawkins.
Diversification Opportunities for Proficient Auto and Hawkins
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Proficient and Hawkins is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Proficient Auto 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 Proficient Auto Logistics, 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 Proficient Auto i.e., Proficient Auto and Hawkins go up and down completely randomly.
Pair Corralation between Proficient Auto and Hawkins
Considering the 90-day investment horizon Proficient Auto is expected to generate 1.33 times less return on investment than Hawkins. In addition to that, Proficient Auto is 1.29 times more volatile than Hawkins. It trades about 0.28 of its total potential returns per unit of risk. Hawkins is currently generating about 0.48 per unit of volatility. If you would invest 10,608 in Hawkins on September 4, 2024 and sell it today you would earn a total of 3,057 from holding Hawkins or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Hawkins
Performance |
| Timeline |
| Proficient Auto Logi |
| Hawkins |
Proficient Auto and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Hawkins
The main advantage of trading using opposite Proficient Auto and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto 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.| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. BingEx | Proficient Auto vs. Globavend Holdings Limited |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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