Correlation Between Hurco Companies and Shapeways Holdings,

Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Shapeways 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 Shapeways 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 Shapeways Holdings, Common, you can compare the effects of market volatilities on Hurco Companies and Shapeways 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 Shapeways Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Shapeways Holdings,.

Diversification Opportunities for Hurco Companies and Shapeways Holdings,

0.31

Correlation Coefficient

Hurco Companies  Shapeways Holdings,

Weak diversification

The 3 months correlation between Hurco and Shapeways is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Shapeways Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapeways 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 Shapeways Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapeways Holdings, has no effect on the direction of Hurco Companies i.e., Hurco Companies and Shapeways Holdings, go up and down completely randomly.

Pair Corralation between Hurco Companies and Shapeways Holdings,

Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Shapeways Holdings,. But the stock apears to be less risky and, when comparing its historical volatility, Hurco Companies is 32.25 times less risky than Shapeways Holdings,. The stock trades about -0.02 of its potential returns per unit of risk. The Shapeways Holdings, Common is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  189.00  in Shapeways Holdings, Common on October 14, 2024 and sell it today you would lose (188.99) from holding Shapeways Holdings, Common or give up 99.99% 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.  Shapeways Holdings, Common

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.

Shapeways Holdings,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shapeways Holdings, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, Shapeways Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hurco Companies and Shapeways Holdings,

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

The idea behind Hurco Companies and Shapeways Holdings, Common 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.