Correlation Between Hurco Companies and Bill

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

By analyzing existing cross correlation between Hurco Companies and Bill Com Holdings, you can compare the effects of market volatilities on Hurco Companies and Bill 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 Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Bill.

Diversification Opportunities for Hurco Companies and Bill

0.47

Correlation Coefficient

Hurco Companies  Bill

Very weak diversification

The 3 months correlation between Hurco and Bill is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings 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 Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Hurco Companies i.e., Hurco Companies and Bill go up and down completely randomly.

Pair Corralation between Hurco Companies and Bill

Given the investment horizon of 90 days Hurco Companies is expected to generate 0.65 times more return on investment than Bill. However, Hurco Companies is 1.55 times less risky than Bill. It trades about -0.08 of its potential returns per unit of risk. Bill Com Holdings is currently generating about -0.17 per unit of risk. If you would invest  1,919  in Hurco Companies on December 19, 2024 and sell it today you would lose (344.00) from holding Hurco Companies or give up 17.93% of portfolio value over 90 days.

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

Hurco Companies  vs.  Bill Com Holdings

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.

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Hurco Companies and Bill

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

The idea behind Hurco Companies and Bill Com Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..