Correlation Between Worthington Industries and Haynes International
Can any of the company-specific risk be diversified away by investing in both Worthington Industries and Haynes International 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 Worthington Industries and Haynes International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worthington Industries and Haynes International, you can compare the effects of market volatilities on Worthington Industries and Haynes International 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 Worthington Industries with a short position of Haynes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worthington Industries and Haynes International.
Diversification Opportunities for Worthington Industries and Haynes International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Worthington and Haynes is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Industries and Haynes International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haynes International and Worthington Industries 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 Worthington Industries are associated (or correlated) with Haynes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haynes International has no effect on the direction of Worthington Industries i.e., Worthington Industries and Haynes International go up and down completely randomly.
Pair Corralation between Worthington Industries and Haynes International
Considering the 90-day investment horizon Worthington Industries is expected to under-perform the Haynes International. In addition to that, Worthington Industries is 2.24 times more volatile than Haynes International. It trades about 0.0 of its total potential returns per unit of risk. Haynes International is currently generating about 0.1 per unit of volatility. If you would invest 4,854 in Haynes International on August 26, 2024 and sell it today you would earn a total of 1,245 from holding Haynes International or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Worthington Industries vs. Haynes International
Performance |
| Timeline |
| Worthington Industries |
| Haynes International |
Worthington Industries and Haynes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worthington Industries and Haynes International
The main advantage of trading using opposite Worthington Industries and Haynes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worthington Industries position performs unexpectedly, Haynes International 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 Haynes International will offset losses from the drop in Haynes International's long position.| Worthington Industries vs. Allegheny Technologies Incorporated | Worthington Industries vs. Haynes International | Worthington Industries vs. ESAB Corp | Worthington Industries vs. Insteel Industries |
| Haynes International vs. Insteel Industries | Haynes International vs. Mayville Engineering Co | Haynes International vs. Gulf Island Fabrication | Haynes International vs. ESAB Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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