Correlation Between Hexcel and Intelligent Living

Can any of the company-specific risk be diversified away by investing in both Hexcel and Intelligent Living 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 Hexcel and Intelligent Living into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hexcel and Intelligent Living Application, you can compare the effects of market volatilities on Hexcel and Intelligent Living 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 Hexcel with a short position of Intelligent Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexcel and Intelligent Living.

Diversification Opportunities for Hexcel and Intelligent Living

0.26

Correlation Coefficient

Hexcel  Intelligent Living

Modest diversification

The 3 months correlation between Hexcel and Intelligent is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hexcel and Intelligent Living Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Living and Hexcel 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 Hexcel are associated (or correlated) with Intelligent Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Living has no effect on the direction of Hexcel i.e., Hexcel and Intelligent Living go up and down completely randomly.

Pair Corralation between Hexcel and Intelligent Living

Considering the 90-day investment horizon Hexcel is expected to generate 2.64 times less return on investment than Intelligent Living. But when comparing it to its historical volatility, Hexcel is 4.03 times less risky than Intelligent Living. It trades about 0.15 of its potential returns per unit of risk. Intelligent Living Application is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Intelligent Living Application on May 15, 2025 and sell it today you would earn a total of  12.00  from holding Intelligent Living Application or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hexcel  vs.  Intelligent Living Application

Hexcel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Hexcel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Living

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Living Application are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Intelligent Living reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hexcel and Intelligent Living

The main advantage of trading using opposite Hexcel and Intelligent Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexcel position performs unexpectedly, Intelligent Living 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 Intelligent Living will offset losses from the drop in Intelligent Living's long position.

The idea behind Hexcel and Intelligent Living Application 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.