Correlation Between CompoSecure and Haynes International

Can any of the company-specific risk be diversified away by investing in both CompoSecure 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 CompoSecure and Haynes International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CompoSecure and Haynes International, you can compare the effects of market volatilities on CompoSecure 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 CompoSecure with a short position of Haynes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompoSecure and Haynes International.

Diversification Opportunities for CompoSecure and Haynes International

0.0

Correlation Coefficient

CompoSecure  Haynes International

Pay attention - limited upside

The 3 months correlation between CompoSecure and Haynes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CompoSecure and Haynes International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haynes International and CompoSecure 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 CompoSecure 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 CompoSecure i.e., CompoSecure and Haynes International go up and down completely randomly.

Pair Corralation between CompoSecure and Haynes International

If you would invest (100.00) in Haynes International on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Haynes International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CompoSecure  vs.  Haynes International

CompoSecure

Risk-Adjusted Performance

Very Weak

Over the last 90 days CompoSecure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Haynes International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haynes International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Haynes International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CompoSecure and Haynes International

The main advantage of trading using opposite CompoSecure and Haynes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompoSecure 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.

The idea behind CompoSecure and Haynes International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..