Correlation Between Stingray and Richelieu Hardware
Can any of the company-specific risk be diversified away by investing in both Stingray and Richelieu Hardware 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 Stingray and Richelieu Hardware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stingray Group and Richelieu Hardware, you can compare the effects of market volatilities on Stingray and Richelieu Hardware 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 Stingray with a short position of Richelieu Hardware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stingray and Richelieu Hardware.
Diversification Opportunities for Stingray and Richelieu Hardware
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stingray and Richelieu is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Stingray Group and Richelieu Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richelieu Hardware and Stingray 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 Stingray Group are associated (or correlated) with Richelieu Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richelieu Hardware has no effect on the direction of Stingray i.e., Stingray and Richelieu Hardware go up and down completely randomly.
Pair Corralation between Stingray and Richelieu Hardware
Assuming the 90 days trading horizon Stingray Group is expected to under-perform the Richelieu Hardware. But the stock apears to be less risky and, when comparing its historical volatility, Stingray Group is 1.24 times less risky than Richelieu Hardware. The stock trades about -0.38 of its potential returns per unit of risk. The Richelieu Hardware is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 4,094 in Richelieu Hardware on September 25, 2024 and sell it today you would lose (239.00) from holding Richelieu Hardware or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stingray Group vs. Richelieu Hardware
Performance |
| Timeline |
| Stingray Group |
| Richelieu Hardware |
Stingray and Richelieu Hardware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stingray and Richelieu Hardware
The main advantage of trading using opposite Stingray and Richelieu Hardware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stingray position performs unexpectedly, Richelieu Hardware 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 Richelieu Hardware will offset losses from the drop in Richelieu Hardware's long position.| Stingray vs. Premium Income | Stingray vs. E L Financial Corp | Stingray vs. Fairfax Financial Holdings | Stingray vs. Fairfax Financial Holdings |
| Richelieu Hardware vs. Stella Jones | Richelieu Hardware vs. Winpak | Richelieu Hardware vs. Stantec | Richelieu Hardware vs. Gildan Activewear |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |