Correlation Between Helios Technologies and Graco

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

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

Diversification Opportunities for Helios Technologies and Graco

-0.17

Correlation Coefficient

Helios Technologies  Graco

Good diversification

The 3 months correlation between Helios and Graco is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Helios Technologies and Graco Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graco Inc and Helios Technologies 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 Helios Technologies are associated (or correlated) with Graco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graco Inc has no effect on the direction of Helios Technologies i.e., Helios Technologies and Graco go up and down completely randomly.

Pair Corralation between Helios Technologies and Graco

Given the investment horizon of 90 days Helios Technologies is expected to under-perform the Graco. In addition to that, Helios Technologies is 1.73 times more volatile than Graco Inc. It trades about -0.21 of its total potential returns per unit of risk. Graco Inc is currently generating about 0.02 per unit of volatility. If you would invest  8,387  in Graco Inc on December 27, 2024 and sell it today you would earn a total of  57.00  from holding Graco Inc or generate 0.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Helios Technologies  vs.  Graco Inc

Helios Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helios Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward 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.

Graco Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Graco Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Graco is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Helios Technologies and Graco

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

The idea behind Helios Technologies and Graco Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.