Correlation Between Hewlett Packard and Bolt Projects
Can any of the company-specific risk be diversified away by investing in both Hewlett Packard and Bolt Projects 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 Hewlett Packard and Bolt Projects into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hewlett Packard Enterprise and Bolt Projects Holdings,, you can compare the effects of market volatilities on Hewlett Packard and Bolt Projects 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 Hewlett Packard with a short position of Bolt Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hewlett Packard and Bolt Projects.
Diversification Opportunities for Hewlett Packard and Bolt Projects
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hewlett and Bolt is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hewlett Packard Enterprise and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, and Hewlett Packard 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 Hewlett Packard Enterprise are associated (or correlated) with Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Hewlett Packard i.e., Hewlett Packard and Bolt Projects go up and down completely randomly.
Pair Corralation between Hewlett Packard and Bolt Projects
Assuming the 90 days trading horizon Hewlett Packard Enterprise is expected to under-perform the Bolt Projects. But the stock apears to be less risky and, when comparing its historical volatility, Hewlett Packard Enterprise is 18.1 times less risky than Bolt Projects. The stock trades about -0.12 of its potential returns per unit of risk. The Bolt Projects Holdings, is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Bolt Projects Holdings, on October 9, 2024 and sell it today you would earn a total of 1.00 from holding Bolt Projects Holdings, or generate 33.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 68.42% |
Values | Daily Returns |
Hewlett Packard Enterprise vs. Bolt Projects Holdings,
Performance |
Timeline |
Hewlett Packard Ente |
Bolt Projects Holdings, |
Hewlett Packard and Bolt Projects Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hewlett Packard and Bolt Projects
The main advantage of trading using opposite Hewlett Packard and Bolt Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hewlett Packard position performs unexpectedly, Bolt Projects 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 Bolt Projects will offset losses from the drop in Bolt Projects' long position.Hewlett Packard vs. Diageo PLC ADR | Hewlett Packard vs. Flexible Solutions International | Hewlett Packard vs. Summit Materials | Hewlett Packard vs. Oatly Group AB |
Bolt Projects vs. Belden Inc | Bolt Projects vs. Copperbank Resources Corp | Bolt Projects vs. Ironveld Plc | Bolt Projects vs. Harmony Gold Mining |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |