Correlation Between Hawkins and BRASKM

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

By analyzing existing cross correlation between Hawkins and BRASKM 45 31 JAN 30, you can compare the effects of market volatilities on Hawkins and BRASKM 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 BRASKM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and BRASKM.

Diversification Opportunities for Hawkins and BRASKM

-0.22

Correlation Coefficient

Hawkins  BRASKM

Very good diversification

The 3 months correlation between Hawkins and BRASKM is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and BRASKM 45 31 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRASKM 45 31 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 BRASKM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRASKM 45 31 has no effect on the direction of Hawkins i.e., Hawkins and BRASKM go up and down completely randomly.

Pair Corralation between Hawkins and BRASKM

Given the investment horizon of 90 days Hawkins is expected to generate 1.45 times more return on investment than BRASKM. However, Hawkins is 1.45 times more volatile than BRASKM 45 31 JAN 30. It trades about 0.08 of its potential returns per unit of risk. BRASKM 45 31 JAN 30 is currently generating about -0.14 per unit of risk. If you would invest  11,986  in Hawkins on September 13, 2024 and sell it today you would earn a total of  1,289  from holding Hawkins or generate 10.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	54.69%
Values	Daily Returns

Hawkins  vs.  BRASKM 45 31 JAN 30

Hawkins

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hawkins are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Hawkins may actually be approaching a critical reversion point that can send shares even higher in January 2025.

BRASKM 45 31

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BRASKM 45 31 JAN 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for BRASKM 45 31 JAN 30 investors.

Pair Trading with Hawkins and BRASKM

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

The idea behind Hawkins and BRASKM 45 31 JAN 30 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.