Correlation Between Maris Tech and Hillcrest Energy

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

By analyzing existing cross correlation between Maris Tech and Hillcrest Energy Technologies, you can compare the effects of market volatilities on Maris Tech and Hillcrest Energy 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 Maris Tech with a short position of Hillcrest Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maris Tech and Hillcrest Energy.

Diversification Opportunities for Maris Tech and Hillcrest Energy

0.01

Correlation Coefficient

Maris Tech  Hillcrest Energy

Significant diversification

The 3 months correlation between Maris and Hillcrest is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Maris Tech and Hillcrest Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillcrest Energy Tec and Maris Tech 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 Maris Tech are associated (or correlated) with Hillcrest Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillcrest Energy Tec has no effect on the direction of Maris Tech i.e., Maris Tech and Hillcrest Energy go up and down completely randomly.

Pair Corralation between Maris Tech and Hillcrest Energy

Given the investment horizon of 90 days Maris Tech is expected to under-perform the Hillcrest Energy. But the stock apears to be less risky and, when comparing its historical volatility, Maris Tech is 1.22 times less risky than Hillcrest Energy. The stock trades about -0.17 of its potential returns per unit of risk. The Hillcrest Energy Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  8.20  in Hillcrest Energy Technologies on December 30, 2024 and sell it today you would earn a total of  1.80  from holding Hillcrest Energy Technologies or generate 21.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Maris Tech  vs.  Hillcrest Energy Technologies

Maris Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maris Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Hillcrest Energy Tec

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hillcrest Energy Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Hillcrest Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maris Tech and Hillcrest Energy

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

The idea behind Maris Tech and Hillcrest Energy Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.