Correlation Between Hawkins and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Hawkins and FTAC Emerald 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 FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Hawkins and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and FTAC Emerald.
Diversification Opportunities for Hawkins and FTAC Emerald
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hawkins and FTAC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Hawkins i.e., Hawkins and FTAC Emerald go up and down completely randomly.
Pair Corralation between Hawkins and FTAC Emerald
Given the investment horizon of 90 days Hawkins is expected to generate 7.2 times more return on investment than FTAC Emerald. However, Hawkins is 7.2 times more volatile than FTAC Emerald Acquisition. It trades about 0.11 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.06 per unit of risk. If you would invest 4,102 in Hawkins on October 5, 2024 and sell it today you would earn a total of 7,955 from holding Hawkins or generate 193.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 97.8% |
Values | Daily Returns |
Hawkins vs. FTAC Emerald Acquisition
Performance |
Timeline |
Hawkins |
FTAC Emerald Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Hawkins and FTAC Emerald Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hawkins and FTAC Emerald
The main advantage of trading using opposite Hawkins and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
FTAC Emerald vs. Griffon | FTAC Emerald vs. Hurco Companies | FTAC Emerald vs. ZhongAn Online P | FTAC Emerald vs. QuinStreet |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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