Correlation Between American Superconductor and Hurco Companies
Can any of the company-specific risk be diversified away by investing in both American Superconductor and Hurco Companies 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 American Superconductor and Hurco Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Superconductor and Hurco Companies, you can compare the effects of market volatilities on American Superconductor and Hurco Companies 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 American Superconductor with a short position of Hurco Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Superconductor and Hurco Companies.
Diversification Opportunities for American Superconductor and Hurco Companies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Hurco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Superconductor and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies and American Superconductor 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 American Superconductor are associated (or correlated) with Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of American Superconductor i.e., American Superconductor and Hurco Companies go up and down completely randomly.
Pair Corralation between American Superconductor and Hurco Companies
Given the investment horizon of 90 days American Superconductor is expected to generate 1.86 times more return on investment than Hurco Companies. However, American Superconductor is 1.86 times more volatile than Hurco Companies. It trades about 0.12 of its potential returns per unit of risk. Hurco Companies is currently generating about -0.18 per unit of risk. If you would invest 1,276 in American Superconductor on February 8, 2024 and sell it today you would earn a total of 77.00 from holding American Superconductor or generate 6.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
American Superconductor vs. Hurco Companies
Performance |
Timeline |
American Superconductor |
Hurco Companies |
American Superconductor and Hurco Companies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Superconductor and Hurco Companies
The main advantage of trading using opposite American Superconductor and Hurco Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Superconductor position performs unexpectedly, Hurco Companies 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 Hurco Companies will offset losses from the drop in Hurco Companies' long position.American Superconductor vs. Nel ASA | American Superconductor vs. Graham | American Superconductor vs. Watts Water Technologies | American Superconductor vs. CVD Equipment |
Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |