Correlation Between Weber and Hawkins
Can any of the company-specific risk be diversified away by investing in both Weber 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 Weber and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weber Inc and Hawkins, you can compare the effects of market volatilities on Weber 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 Weber with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weber and Hawkins.
Diversification Opportunities for Weber and Hawkins
Good diversification
The 3 months correlation between Weber and Hawkins is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Weber Inc and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Weber 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 Weber Inc 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 Weber i.e., Weber and Hawkins go up and down completely randomly.
Pair Corralation between Weber and Hawkins
If you would invest 812.00 in Weber Inc on September 21, 2024 and sell it today you would earn a total of 0.00 from holding Weber Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Weber Inc vs. Hawkins
Performance |
| Timeline |
| Weber Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hawkins |
Weber and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weber and Hawkins
The main advantage of trading using opposite Weber and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weber 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.| Weber vs. Sensient Technologies | Weber vs. Sealed Air | Weber vs. Inflection Point Acquisition | Weber vs. Avient Corp |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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