Correlation Between Hurco Companies and Argent Mid

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

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

Diversification Opportunities for Hurco Companies and Argent Mid

0.77

Correlation Coefficient

Hurco Companies  Argent Mid

Poor diversification

The 3 months correlation between Hurco and Argent is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Argent Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argent Mid Cap and Hurco Companies 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 Hurco Companies are associated (or correlated) with Argent Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argent Mid Cap has no effect on the direction of Hurco Companies i.e., Hurco Companies and Argent Mid go up and down completely randomly.

Pair Corralation between Hurco Companies and Argent Mid

Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Argent Mid. In addition to that, Hurco Companies is 3.33 times more volatile than Argent Mid Cap. It trades about -0.07 of its total potential returns per unit of risk. Argent Mid Cap is currently generating about -0.15 per unit of volatility. If you would invest  3,446  in Argent Mid Cap on December 21, 2024 and sell it today you would lose (309.00) from holding Argent Mid Cap or give up 8.97% of portfolio value over 90 days.

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

Hurco Companies  vs.  Argent Mid Cap

Hurco Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hurco Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Argent Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argent Mid Cap has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Hurco Companies and Argent Mid

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

The idea behind Hurco Companies and Argent Mid Cap 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..