Correlation Between PyroGenesis Canada and Hillenbrand

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

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

Diversification Opportunities for PyroGenesis Canada and Hillenbrand

0.0

Correlation Coefficient

PyroGenesis Canada  Hillenbrand

Pay attention - limited upside

The 3 months correlation between PyroGenesis and Hillenbrand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PyroGenesis Canada and Hillenbrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillenbrand and PyroGenesis Canada 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 PyroGenesis Canada are associated (or correlated) with Hillenbrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillenbrand has no effect on the direction of PyroGenesis Canada i.e., PyroGenesis Canada and Hillenbrand go up and down completely randomly.

Pair Corralation between PyroGenesis Canada and Hillenbrand

If you would invest (100.00) in PyroGenesis Canada on December 22, 2024 and sell it today you would earn a total of  100.00  from holding PyroGenesis Canada or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PyroGenesis Canada  vs.  Hillenbrand

PyroGenesis Canada

Risk-Adjusted Performance

Very Weak

Over the last 90 days PyroGenesis Canada has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, PyroGenesis Canada is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Hillenbrand

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hillenbrand 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 forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with PyroGenesis Canada and Hillenbrand

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

The idea behind PyroGenesis Canada and Hillenbrand 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.