Correlation Between HERSHEY and Axalta Coating
Specify exactly 2 symbols:
By analyzing existing cross correlation between HERSHEY 72 percent and Axalta Coating Systems, you can compare the effects of market volatilities on HERSHEY and Axalta Coating 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 HERSHEY with a short position of Axalta Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of HERSHEY and Axalta Coating.
Diversification Opportunities for HERSHEY and Axalta Coating
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HERSHEY and Axalta is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HERSHEY 72 percent and Axalta Coating Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axalta Coating Systems and HERSHEY 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 HERSHEY 72 percent are associated (or correlated) with Axalta Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axalta Coating Systems has no effect on the direction of HERSHEY i.e., HERSHEY and Axalta Coating go up and down completely randomly.
Pair Corralation between HERSHEY and Axalta Coating
Assuming the 90 days trading horizon HERSHEY is expected to generate 1.88 times less return on investment than Axalta Coating. But when comparing it to its historical volatility, HERSHEY 72 percent is 1.28 times less risky than Axalta Coating. It trades about 0.08 of its potential returns per unit of risk. Axalta Coating Systems is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,574 in Axalta Coating Systems on September 3, 2024 and sell it today you would earn a total of 472.00 from holding Axalta Coating Systems or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 43.75% |
| Values | Daily Returns |
HERSHEY 72 percent vs. Axalta Coating Systems
Performance |
| Timeline |
| HERSHEY 72 percent |
| Axalta Coating Systems |
HERSHEY and Axalta Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HERSHEY and Axalta Coating
The main advantage of trading using opposite HERSHEY and Axalta Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HERSHEY position performs unexpectedly, Axalta Coating 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 Axalta Coating will offset losses from the drop in Axalta Coating's long position.| HERSHEY vs. Axalta Coating Systems | HERSHEY vs. Balchem | HERSHEY vs. One Gas | HERSHEY vs. Air Products and |
| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |