Correlation Between Hilton Metal and LLOYDS METALS

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

By analyzing existing cross correlation between Hilton Metal Forging and LLOYDS METALS AND, you can compare the effects of market volatilities on Hilton Metal and LLOYDS METALS 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 Hilton Metal with a short position of LLOYDS METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Metal and LLOYDS METALS.

Diversification Opportunities for Hilton Metal and LLOYDS METALS

0.12

Correlation Coefficient

Hilton Metal  LLOYDS METALS

Average diversification

The 3 months correlation between Hilton and LLOYDS is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Metal Forging and LLOYDS METALS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS METALS AND and Hilton Metal 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 Hilton Metal Forging are associated (or correlated) with LLOYDS METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS METALS AND has no effect on the direction of Hilton Metal i.e., Hilton Metal and LLOYDS METALS go up and down completely randomly.

Pair Corralation between Hilton Metal and LLOYDS METALS

Assuming the 90 days trading horizon Hilton Metal Forging is expected to under-perform the LLOYDS METALS. In addition to that, Hilton Metal is 1.69 times more volatile than LLOYDS METALS AND. It trades about -0.01 of its total potential returns per unit of risk. LLOYDS METALS AND is currently generating about 0.11 per unit of volatility. If you would invest  132,581  in LLOYDS METALS AND on April 24, 2025 and sell it today you would earn a total of  20,499  from holding LLOYDS METALS AND or generate 15.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hilton Metal Forging  vs.  LLOYDS METALS AND

Hilton Metal Forging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hilton Metal Forging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hilton Metal is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

LLOYDS METALS AND

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LLOYDS METALS AND are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, LLOYDS METALS displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hilton Metal and LLOYDS METALS

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

The idea behind Hilton Metal Forging and LLOYDS METALS AND 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.