Correlation Between Baudax Bio and Hamilton Beach

By analyzing existing cross correlation between Baudax Bio and Hamilton Beach Brands you can compare the effects of market volatilities on Baudax Bio and Hamilton Beach 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 Baudax Bio with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baudax Bio and Hamilton Beach.

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Can any of the company-specific risk be diversified away by investing in both Baudax Bio and Hamilton Beach at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Baudax Bio and Hamilton Beach into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Baudax Bio and Hamilton Beach

0.29
Correlation
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Modest diversification

The 3 months correlation between Baudax and Hamilton is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Baudax Bio and Hamilton Beach Brands Holding in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and Baudax Bio 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 Baudax Bio are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Baudax Bio i.e. Baudax Bio and Hamilton Beach go up and down completely randomly.

Pair Corralation between Baudax Bio and Hamilton Beach

Given the investment horizon of 30 days, Baudax Bio is expected to generate 14.52 times more return on investment than Hamilton Beach. However, Baudax Bio is 14.52 times more volatile than Hamilton Beach Brands. It trades about 0.12 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.04 per unit of risk. If you would invest  644.00  in Baudax Bio on May 5, 2020 and sell it today you would lose (242.00)  from holding Baudax Bio or give up 37.58% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Baudax Bio  vs.  Hamilton Beach Brands Holding

 Performance (%) 
      Timeline 
Baudax Bio 
88

Baudax Bio Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Baudax Bio are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak basic indicators, Baudax Bio showed solid returns over the last few months and may actually be approaching a breakup point.
Hamilton Beach Brands 
22

Hamilton Beach Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

Baudax Bio and Hamilton Beach Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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