Correlation Between Twitter and Hamilton Beach

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Twitter and Hamilton Beach

0.63
Correlation
<div class='circular--portrait-small' style='font-weight: 700;background:#689CFD;color: #ffffff;font-size:0.9em;padding-top: 12px;;'>TWT</div>
<div class='circular--portrait-small' style='font-weight: 700;background:#006400;color: #FFE4E1;font-size:1.1em;padding-top: 10px;;'>HB</div>

Poor diversification

The 3 months correlation between Twitter and Hamilton is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Twitter 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 Twitter 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 Twitter 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 Twitter i.e. Twitter and Hamilton Beach go up and down completely randomly.

Pair Corralation between Twitter and Hamilton Beach

Given the investment horizon of 30 days, Twitter is expected to generate 1.79 times less return on investment than Hamilton Beach. But when comparing it to its historical volatility, Twitter is 1.64 times less risky than Hamilton Beach. It trades about 0.05 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 7, 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
Accuracy100.0%
ValuesDaily Returns

Twitter Inc  vs.  Hamilton Beach Brands Holding

 Performance (%) 
      Timeline 
Twitter 
33

Twitter Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Twitter reported 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.

Twitter and Hamilton Beach Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page