Correlation Between Solid Power and Hayward Holdings
Can any of the company-specific risk be diversified away by investing in both Solid Power and Hayward Holdings 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 Solid Power and Hayward Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and Hayward Holdings, you can compare the effects of market volatilities on Solid Power and Hayward Holdings 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 Solid Power with a short position of Hayward Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and Hayward Holdings.
Diversification Opportunities for Solid Power and Hayward Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solid and Hayward is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and Hayward Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hayward Holdings and Solid Power 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 Solid Power are associated (or correlated) with Hayward Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hayward Holdings has no effect on the direction of Solid Power i.e., Solid Power and Hayward Holdings go up and down completely randomly.
Pair Corralation between Solid Power and Hayward Holdings
Given the investment horizon of 90 days Solid Power is expected to under-perform the Hayward Holdings. In addition to that, Solid Power is 1.79 times more volatile than Hayward Holdings. It trades about -0.09 of its total potential returns per unit of risk. Hayward Holdings is currently generating about 0.24 per unit of volatility. If you would invest 1,480 in Hayward Holdings on August 28, 2024 and sell it today you would earn a total of 160.00 from holding Hayward Holdings or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Power vs. Hayward Holdings
Performance |
| Timeline |
| Solid Power |
| Hayward Holdings |
Solid Power and Hayward Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and Hayward Holdings
The main advantage of trading using opposite Solid Power and Hayward Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power position performs unexpectedly, Hayward Holdings 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 Hayward Holdings will offset losses from the drop in Hayward Holdings' long position.| Solid Power vs. Plug Power | Solid Power vs. FREYR Battery SA | Solid Power vs. FuelCell Energy | Solid Power vs. Enovix Corp |
| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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