Correlation Between Hurco Companies and KIMCO

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

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

Diversification Opportunities for Hurco Companies and KIMCO

0.37

Correlation Coefficient

Hurco Companies  KIMCO

Weak diversification

The 3 months correlation between Hurco and KIMCO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Hurco Companies i.e., Hurco Companies and KIMCO go up and down completely randomly.

Pair Corralation between Hurco Companies and KIMCO

Given the investment horizon of 90 days Hurco Companies is expected to generate 1.89 times less return on investment than KIMCO. In addition to that, Hurco Companies is 7.26 times more volatile than KIMCO RLTY P. It trades about 0.0 of its total potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.06 per unit of volatility. If you would invest  9,148  in KIMCO RLTY P on October 5, 2024 and sell it today you would earn a total of  547.00  from holding KIMCO RLTY P or generate 5.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.97%
Values	Daily Returns

Hurco Companies  vs.  KIMCO RLTY P

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.

KIMCO RLTY P

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KIMCO RLTY P are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KIMCO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hurco Companies and KIMCO

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

The idea behind Hurco Companies and KIMCO RLTY P 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.