Correlation Between Hamilton Beach and Mohawk Group

By analyzing existing cross correlation between Hamilton Beach Brands and Mohawk Group Holdings you can compare the effects of market volatilities on Hamilton Beach and Mohawk Group 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 Mohawk Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Beach and Mohawk Group.

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Can any of the company-specific risk be diversified away by investing in both Hamilton Beach and Mohawk Group at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Hamilton Beach and Mohawk Group into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Hamilton Beach and Mohawk Group

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Weak diversification

The 3 months correlation between Hamilton and Mohawk is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands Holding and Mohawk Group Holdings in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Mohawk Group Holdings 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 Mohawk Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mohawk Group Holdings has no effect on the direction of Hamilton Beach i.e. Hamilton Beach and Mohawk Group go up and down completely randomly.

Pair Corralation between Hamilton Beach and Mohawk Group

Considering 30-days investment horizon, Hamilton Beach is expected to generate 28.53 times less return on investment than Mohawk Group. But when comparing it to its historical volatility, Hamilton Beach Brands is 1.57 times less risky than Mohawk Group. It trades about 0.01 of its potential returns per unit of risk. Mohawk Group Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  347.00  in Mohawk Group Holdings on April 30, 2020 and sell it today you would earn a total of  168.00  from holding Mohawk Group Holdings or generate 48.41% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

Hamilton Beach Brands Holding   vs.  Mohawk Group Holdings

 Performance (%) 
Hamilton Beach Brands 

Hamilton Beach Risk-Adjusted Performance

Over the last 30 days Hamilton Beach Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hamilton Beach is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
Mohawk Group Holdings 

Mohawk Group Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Mohawk Group Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly weak technical and fundamental indicators, Mohawk Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Beach and Mohawk Group Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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