Correlation Between Twitter and Hamilton Beach

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Twitter and Hamilton 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 Twitter and Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Hamilton Beach Brands, you can compare the effects of market volatilities on Twitter and Hamilton 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 Twitter with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Hamilton Beach.

Diversification Opportunities for Twitter and Hamilton Beach

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Twitter and Hamilton is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and Twitter 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 Twitter are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Twitter i.e., Twitter and Hamilton Beach go up and down completely randomly.

Pair Corralation between Twitter and Hamilton Beach

If you would invest  1,926  in Hamilton Beach Brands on December 29, 2023 and sell it today you would earn a total of  532.00  from holding Hamilton Beach Brands or generate 27.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy4.55%
ValuesDaily Returns

Twitter  vs.  Hamilton Beach Brands

 Performance 
       Timeline  
Twitter 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Twitter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Twitter is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Hamilton Beach Brands 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

Twitter and Hamilton Beach Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Twitter and Hamilton Beach

The main advantage of trading using opposite Twitter and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, Hamilton 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 Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.
The idea behind Twitter and Hamilton Beach Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Fundamental Analysis
View fundamental data based on most recent published financial statements
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets