Correlation Between Hexing Electrical and ParaZero Technologies

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Can any of the company-specific risk be diversified away by investing in both Hexing Electrical and ParaZero Technologies 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 Hexing Electrical and ParaZero Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexing Electrical Co and ParaZero Technologies Ltd, you can compare the effects of market volatilities on Hexing Electrical and ParaZero Technologies 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 Hexing Electrical with a short position of ParaZero Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexing Electrical and ParaZero Technologies.

Diversification Opportunities for Hexing Electrical and ParaZero Technologies

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hexing and ParaZero is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hexing Electrical Co and ParaZero Technologies Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ParaZero Technologies and Hexing Electrical 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 Hexing Electrical Co are associated (or correlated) with ParaZero Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ParaZero Technologies has no effect on the direction of Hexing Electrical i.e., Hexing Electrical and ParaZero Technologies go up and down completely randomly.

Pair Corralation between Hexing Electrical and ParaZero Technologies

Assuming the 90 days trading horizon Hexing Electrical Co is expected to generate 0.57 times more return on investment than ParaZero Technologies. However, Hexing Electrical Co is 1.76 times less risky than ParaZero Technologies. It trades about 0.15 of its potential returns per unit of risk. ParaZero Technologies Ltd is currently generating about 0.03 per unit of risk. If you would invest  2,747  in Hexing Electrical Co on September 8, 2025 and sell it today you would earn a total of  733.00  from holding Hexing Electrical Co or generate 26.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy92.31%
ValuesDaily Returns

Hexing Electrical Co  vs.  ParaZero Technologies Ltd

 Performance 
       Timeline  
Hexing Electrical 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hexing Electrical Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hexing Electrical sustained solid returns over the last few months and may actually be approaching a breakup point.
ParaZero Technologies 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ParaZero Technologies Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, ParaZero Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Hexing Electrical and ParaZero Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hexing Electrical and ParaZero Technologies

The main advantage of trading using opposite Hexing Electrical and ParaZero Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexing Electrical position performs unexpectedly, ParaZero Technologies 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 ParaZero Technologies will offset losses from the drop in ParaZero Technologies' long position.
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The idea behind Hexing Electrical Co and ParaZero Technologies Ltd 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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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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