Correlation Between Hawkins and Cheetah Net

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

By analyzing existing cross correlation between Hawkins and Cheetah Net Supply, you can compare the effects of market volatilities on Hawkins and Cheetah Net 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 Hawkins with a short position of Cheetah Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Cheetah Net.

Diversification Opportunities for Hawkins and Cheetah Net

0.14

Correlation Coefficient

Hawkins  Cheetah Net

Average diversification

The 3 months correlation between Hawkins and Cheetah is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Cheetah Net Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Net Supply and Hawkins 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 Hawkins are associated (or correlated) with Cheetah Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Net Supply has no effect on the direction of Hawkins i.e., Hawkins and Cheetah Net go up and down completely randomly.

Pair Corralation between Hawkins and Cheetah Net

Given the investment horizon of 90 days Hawkins is expected to generate 0.71 times more return on investment than Cheetah Net. However, Hawkins is 1.4 times less risky than Cheetah Net. It trades about -0.2 of its potential returns per unit of risk. Cheetah Net Supply is currently generating about -0.46 per unit of risk. If you would invest  12,735  in Hawkins on October 27, 2024 and sell it today you would lose (1,167) from holding Hawkins or give up 9.16% of portfolio value over 90 days.

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

Hawkins  vs.  Cheetah Net Supply

Hawkins

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hawkins has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Hawkins is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Cheetah Net Supply

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cheetah Net Supply are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Cheetah Net unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hawkins and Cheetah Net

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

The idea behind Hawkins and Cheetah Net Supply 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.