Correlation Between Hamilton Beach and Turtle Beach
Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and Turtle Beach 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 Turtle Beach 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 Turtle Beach Corp, you can compare the effects of market volatilities on Hamilton Beach and Turtle Beach 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 Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Turtle Beach.
Diversification Opportunities for Hamilton Beach and Turtle Beach
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and Turtle is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and Turtle Beach Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach Corp 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 Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach Corp has no effect on the direction of Hamilton Beach i.e., Hamilton Beach and Turtle Beach go up and down completely randomly.
Pair Corralation between Hamilton Beach and Turtle Beach
Considering the 90-day investment horizon Hamilton Beach is expected to generate 1.02 times less return on investment than Turtle Beach. But when comparing it to its historical volatility, Hamilton Beach Brands is 1.23 times less risky than Turtle Beach. It trades about 0.18 of its potential returns per unit of risk. Turtle Beach Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 823.00 in Turtle Beach Corp on January 17, 2024 and sell it today you would earn a total of 759.00 from holding Turtle Beach Corp or generate 92.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Beach Brands vs. Turtle Beach Corp
Performance |
| Timeline |
| Hamilton Beach Brands |
| Turtle Beach Corp |
Hamilton Beach and Turtle Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Beach and Turtle Beach
The main advantage of trading using opposite Hamilton Beach and Turtle Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Beach position performs unexpectedly, Turtle Beach 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 Turtle Beach will offset losses from the drop in Turtle Beach's long position.| Hamilton Beach vs. Meta Materials | Hamilton Beach vs. Sphere 3D Corp | Hamilton Beach vs. Katapult Holdings | Hamilton Beach vs. Aquagold International |
| Turtle Beach vs. LG Display Co | Turtle Beach vs. Zepp Health Corp | Turtle Beach vs. Sony Corp | Turtle Beach vs. Wearable Devices |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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