Correlation Between Hexcel and Brinks

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

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

Diversification Opportunities for Hexcel and Brinks

0.0

Correlation Coefficient

Hexcel  Brinks

Pay attention - limited upside

The 3 months correlation between Hexcel and Brinks is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hexcel and Brinks Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks Company and Hexcel 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 Hexcel are associated (or correlated) with Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks Company has no effect on the direction of Hexcel i.e., Hexcel and Brinks go up and down completely randomly.

Pair Corralation between Hexcel and Brinks

If you would invest  6,341  in Hexcel on August 26, 2025 and sell it today you would earn a total of  952.00  from holding Hexcel or generate 15.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hexcel  vs.  Brinks Company

Hexcel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Hexcel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Brinks Company

Risk-Adjusted Performance

Weakest

Over the last 90 days Brinks Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Brinks is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hexcel and Brinks

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

The idea behind Hexcel and Brinks Company 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.