Correlation Between TruBridge and Hawkins

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

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

Diversification Opportunities for TruBridge and Hawkins

-0.86

Correlation Coefficient

TruBridge  Hawkins

Pay attention - limited upside

The 3 months correlation between TruBridge and Hawkins is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding TruBridge and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and TruBridge 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 TruBridge are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of TruBridge i.e., TruBridge and Hawkins go up and down completely randomly.

Pair Corralation between TruBridge and Hawkins

Given the investment horizon of 90 days TruBridge is expected to under-perform the Hawkins. In addition to that, TruBridge is 1.42 times more volatile than Hawkins. It trades about -0.18 of its total potential returns per unit of risk. Hawkins is currently generating about 0.31 per unit of volatility. If you would invest  11,964  in Hawkins on May 5, 2025 and sell it today you would earn a total of  3,919  from holding Hawkins or generate 32.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

TruBridge  vs.  Hawkins

TruBridge

Risk-Adjusted Performance

Very Weak

Over the last 90 days TruBridge has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Hawkins

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hawkins are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting forward-looking signals, Hawkins displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TruBridge and Hawkins

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

The idea behind TruBridge and Hawkins 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.