Two Equities Correlation Analysis
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HBB
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Hamilton Beach and NYSE Composite
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and NYSE is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Hamilton Beach 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 Hamilton Beach Brands are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Hamilton Beach i.e., Hamilton Beach and NYSE Composite go up and down completely randomly.
Pair Corralation between Hamilton Beach and NYSE Composite
Considering the 90-day investment horizon Hamilton Beach Brands is expected to generate 2.98 times more return on investment than NYSE Composite. However, Hamilton Beach is 2.98 times more volatile than NYSE Composite. It trades about 0.07 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.02 per unit of risk. If you would invest 912.00 in Hamilton Beach Brands on January 24, 2024 and sell it today you would earn a total of 1,305 from holding Hamilton Beach Brands or generate 143.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hamilton Beach Brands vs. NYSE Composite
Performance |
| Timeline |
Hamilton Beach and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Hamilton Beach Brands
Pair trading matchups for Hamilton Beach
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Hamilton Beach and NYSE Composite
The main advantage of trading using opposite Hamilton Beach and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. Crown Crafts | Hamilton Beach vs. Bassett Furniture Industries |
| NYSE Composite vs. The Wendys Co | NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Rave Restaurant Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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