Correlation Between UNITED UTILITIES and Hastings Technology
Can any of the company-specific risk be diversified away by investing in both UNITED UTILITIES and Hastings Technology 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 UNITED UTILITIES and Hastings Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNITED UTILITIES GR and Hastings Technology Metals, you can compare the effects of market volatilities on UNITED UTILITIES and Hastings Technology 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 UNITED UTILITIES with a short position of Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED UTILITIES and Hastings Technology.
Diversification Opportunities for UNITED UTILITIES and Hastings Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNITED and Hastings is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding UNITED UTILITIES GR and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology and UNITED UTILITIES 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 UNITED UTILITIES GR are associated (or correlated) with Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of UNITED UTILITIES i.e., UNITED UTILITIES and Hastings Technology go up and down completely randomly.
Pair Corralation between UNITED UTILITIES and Hastings Technology
Assuming the 90 days trading horizon UNITED UTILITIES GR is expected to generate 0.22 times more return on investment than Hastings Technology. However, UNITED UTILITIES GR is 4.57 times less risky than Hastings Technology. It trades about 0.04 of its potential returns per unit of risk. Hastings Technology Metals is currently generating about -0.04 per unit of risk. If you would invest 1,034 in UNITED UTILITIES GR on September 14, 2024 and sell it today you would earn a total of 256.00 from holding UNITED UTILITIES GR or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED UTILITIES GR vs. Hastings Technology Metals
Performance |
| Timeline |
| UNITED UTILITIES |
| Hastings Technology |
UNITED UTILITIES and Hastings Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED UTILITIES and Hastings Technology
The main advantage of trading using opposite UNITED UTILITIES and Hastings Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED UTILITIES position performs unexpectedly, Hastings Technology 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 Hastings Technology will offset losses from the drop in Hastings Technology's long position.| UNITED UTILITIES vs. National Retail Properties | UNITED UTILITIES vs. QURATE RETAIL INC | UNITED UTILITIES vs. Sumitomo Rubber Industries | UNITED UTILITIES vs. GOODYEAR T RUBBER |
| Hastings Technology vs. ATRYS HEALTH SA | Hastings Technology vs. Canadian Utilities Limited | Hastings Technology vs. UNITED UTILITIES GR | Hastings Technology vs. G8 EDUCATION |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| 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 | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |