Correlation Between Alphabet and Hamilton Beach

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

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

Diversification Opportunities for Alphabet and Hamilton Beach

0.62
Correlation
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Poor diversification

The 3 months correlation between Alphabet and Hamilton is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc 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 Alphabet 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 Alphabet 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 Alphabet i.e. Alphabet and Hamilton Beach go up and down completely randomly.

Pair Corralation between Alphabet and Hamilton Beach

Given the investment horizon of 30 days, Alphabet is expected to generate 1.41 times less return on investment than Hamilton Beach. But when comparing it to its historical volatility, Alphabet is 2.49 times less risky than Hamilton Beach. It trades about 0.09 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,126  in Hamilton Beach Brands on May 8, 2020 and sell it today you would earn a total of  77.00  from holding Hamilton Beach Brands or generate 6.84% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Alphabet Inc  vs.  Hamilton Beach Brands Holding

 Performance (%) 
      Timeline 
Alphabet 
66

Alphabet Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Alphabet exhibited solid returns over the last few months and may actually be approaching a breakup point.
Hamilton Beach Brands 
33

Hamilton Beach Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 3 (%) 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.

Alphabet and Hamilton Beach Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Companies Directory module to evaluate performance of over 100,000 stocks, funds, and etfs against different fundamentals.


 
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