Correlation Between Hurco Companies and ESGL Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and ESGL Holdings 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 ESGL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and ESGL Holdings Limited, you can compare the effects of market volatilities on Hurco Companies and ESGL Holdings 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 ESGL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and ESGL Holdings.

Diversification Opportunities for Hurco Companies and ESGL Holdings

HurcoESGLDiversified AwayHurcoESGLDiversified Away100%
0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Hurco and ESGL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited 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 ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of Hurco Companies i.e., Hurco Companies and ESGL Holdings go up and down completely randomly.

Pair Corralation between Hurco Companies and ESGL Holdings

Given the investment horizon of 90 days Hurco Companies is expected to generate 34.2 times less return on investment than ESGL Holdings. But when comparing it to its historical volatility, Hurco Companies is 4.0 times less risky than ESGL Holdings. It trades about 0.01 of its potential returns per unit of risk. ESGL Holdings Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1.31  in ESGL Holdings Limited on October 20, 2024 and sell it today you would earn a total of  0.21  from holding ESGL Holdings Limited or generate 16.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy78.69%
ValuesDaily Returns

Hurco Companies  vs.  ESGL Holdings Limited

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -2002040
JavaScript chart by amCharts 3.21.15HURC ESGLW
       Timeline  
Hurco Companies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 rather sound basic indicators, Hurco Companies is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan181920212223
ESGL Holdings Limited 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in ESGL Holdings Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent essential indicators, ESGL Holdings showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecJanNovDecJan0.0080.010.0120.0140.0160.018

Hurco Companies and ESGL Holdings Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.7-2.77-1.84-0.910.00.851.692.543.38 0.020.040.060.08
JavaScript chart by amCharts 3.21.15HURC ESGLW
       Returns  

Pair Trading with Hurco Companies and ESGL Holdings

The main advantage of trading using opposite Hurco Companies and ESGL Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, ESGL Holdings 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 ESGL Holdings will offset losses from the drop in ESGL Holdings' long position.
The idea behind Hurco Companies and ESGL Holdings Limited 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.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing