Correlation Between Hamilton Beach and Beamz Interactive
Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and Beamz Interactive 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 Hamilton Beach and Beamz Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Beach Brands and Beamz Interactive, you can compare the effects of market volatilities on Hamilton Beach and Beamz Interactive 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 Hamilton Beach with a short position of Beamz Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Beamz Interactive.
Diversification Opportunities for Hamilton Beach and Beamz Interactive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hamilton and Beamz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and Beamz Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beamz Interactive 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 Beamz Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beamz Interactive has no effect on the direction of Hamilton Beach i.e., Hamilton Beach and Beamz Interactive go up and down completely randomly.
Pair Corralation between Hamilton Beach and Beamz Interactive
Considering the 90-day investment horizon Hamilton Beach Brands is expected to generate 0.83 times more return on investment than Beamz Interactive. However, Hamilton Beach Brands is 1.21 times less risky than Beamz Interactive. It trades about 0.08 of its potential returns per unit of risk. Beamz Interactive is currently generating about -0.05 per unit of risk. If you would invest 908.00 in Hamilton Beach Brands on January 25, 2024 and sell it today you would earn a total of 1,370 from holding Hamilton Beach Brands or generate 150.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.79% |
Values | Daily Returns |
Hamilton Beach Brands vs. Beamz Interactive
Performance |
Timeline |
Hamilton Beach Brands |
Beamz Interactive |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hamilton Beach and Beamz Interactive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hamilton Beach and Beamz Interactive
The main advantage of trading using opposite Hamilton Beach and Beamz Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach position performs unexpectedly, Beamz Interactive 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 Beamz Interactive will offset losses from the drop in Beamz Interactive's long position.Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. Crown Crafts | Hamilton Beach vs. Bassett Furniture Industries |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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