Correlation Between Honest and Hammer Metals
Can any of the company-specific risk be diversified away by investing in both Honest and Hammer 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 Honest and Hammer Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Honest Company and Hammer Metals Limited, you can compare the effects of market volatilities on Honest and Hammer 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 Honest with a short position of Hammer Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Honest and Hammer Metals.
Diversification Opportunities for Honest and Hammer Metals
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Honest and Hammer is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Honest Company and Hammer Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammer Metals Limited and Honest 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 Honest Company are associated (or correlated) with Hammer Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammer Metals Limited has no effect on the direction of Honest i.e., Honest and Hammer Metals go up and down completely randomly.
Pair Corralation between Honest and Hammer Metals
If you would invest 360.00 in Honest Company on December 29, 2023 and sell it today you would earn a total of 23.00 from holding Honest Company or generate 6.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.54% |
Values | Daily Returns |
Honest Company vs. Hammer Metals Limited
Performance |
Timeline |
Honest Company |
Hammer Metals Limited |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Honest and Hammer Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Honest and Hammer Metals
The main advantage of trading using opposite Honest and Hammer Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Honest position performs unexpectedly, Hammer 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 Hammer Metals will offset losses from the drop in Hammer Metals' long position.Honest vs. Colgate Palmolive | Honest vs. Procter Gamble | Honest vs. Veru Inc | Honest vs. Natural Health Trend |
Hammer Metals vs. Sealed Air | Hammer Metals vs. NETGEAR | Hammer Metals vs. Avient Corp | Hammer Metals vs. KNOT Offshore Partners |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
CEOs Directory Screen CEOs from public companies around the world | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |