Correlation Between Hawsons Iron and Beston Global

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

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

Diversification Opportunities for Hawsons Iron and Beston Global

0.0

Correlation Coefficient

Hawsons Iron  Beston Global

Pay attention - limited upside

The 3 months correlation between Hawsons and Beston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hawsons Iron and Beston Global Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beston Global Food and Hawsons Iron 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 Hawsons Iron are associated (or correlated) with Beston Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beston Global Food has no effect on the direction of Hawsons Iron i.e., Hawsons Iron and Beston Global go up and down completely randomly.

Pair Corralation between Hawsons Iron and Beston Global

Assuming the 90 days trading horizon Hawsons Iron is expected to under-perform the Beston Global. But the stock apears to be less risky and, when comparing its historical volatility, Hawsons Iron is 2.16 times less risky than Beston Global. The stock trades about -0.04 of its potential returns per unit of risk. The Beston Global Food is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2.80  in Beston Global Food on October 24, 2024 and sell it today you would lose (2.50) from holding Beston Global Food or give up 89.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Hawsons Iron  vs.  Beston Global Food

Hawsons Iron

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Hawsons Iron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Beston Global Food

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Beston Global Food has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Beston Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hawsons Iron and Beston Global

The main advantage of trading using opposite Hawsons Iron and Beston Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawsons Iron position performs unexpectedly, Beston Global 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 Beston Global will offset losses from the drop in Beston Global's long position.

The idea behind Hawsons Iron and Beston Global Food 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.