Correlation Between Hurco Companies and Proficient Auto

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

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

Diversification Opportunities for Hurco Companies and Proficient Auto

0.36

Correlation Coefficient

Hurco Companies  Proficient Auto

Weak diversification

The 3 months correlation between Hurco and Proficient is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Hurco Companies i.e., Hurco Companies and Proficient Auto go up and down completely randomly.

Pair Corralation between Hurco Companies and Proficient Auto

Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Hurco Companies is 1.63 times less risky than Proficient Auto. The stock trades about -0.18 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  965.00  in Proficient Auto Logistics, on October 10, 2024 and sell it today you would lose (38.00) from holding Proficient Auto Logistics, or give up 3.94% of portfolio value over 90 days.

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

Hurco Companies  vs.  Proficient Auto Logistics,

Hurco Companies

Risk-Adjusted Performance

0 of 100

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 latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Proficient Auto Logi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 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 Proficient Auto

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

The idea behind Hurco Companies and Proficient Auto Logistics, 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.