Correlation Between Arbor Metals and Hammond Power
Can any of the company-specific risk be diversified away by investing in both Arbor Metals and Hammond Power 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 Arbor Metals and Hammond Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Metals Corp and Hammond Power Solutions, you can compare the effects of market volatilities on Arbor Metals and Hammond Power 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 Arbor Metals with a short position of Hammond Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Metals and Hammond Power.
Diversification Opportunities for Arbor Metals and Hammond Power
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arbor and Hammond is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Metals Corp and Hammond Power Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammond Power Solutions and Arbor Metals 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 Arbor Metals Corp are associated (or correlated) with Hammond Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammond Power Solutions has no effect on the direction of Arbor Metals i.e., Arbor Metals and Hammond Power go up and down completely randomly.
Pair Corralation between Arbor Metals and Hammond Power
Assuming the 90 days horizon Arbor Metals Corp is expected to under-perform the Hammond Power. But the stock apears to be less risky and, when comparing its historical volatility, Arbor Metals Corp is 1.5 times less risky than Hammond Power. The stock trades about -0.09 of its potential returns per unit of risk. The Hammond Power Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 12,224 in Hammond Power Solutions on September 6, 2025 and sell it today you would earn a total of 5,018 from holding Hammond Power Solutions or generate 41.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Metals Corp vs. Hammond Power Solutions
Performance |
| Timeline |
| Arbor Metals Corp |
| Hammond Power Solutions |
Arbor Metals and Hammond Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Metals and Hammond Power
The main advantage of trading using opposite Arbor Metals and Hammond Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Metals position performs unexpectedly, Hammond Power 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 Hammond Power will offset losses from the drop in Hammond Power's long position.| Arbor Metals vs. Aris Mining | Arbor Metals vs. Income Financial Trust | Arbor Metals vs. Power Financial Corp | Arbor Metals vs. Financial 15 Split |
| Hammond Power vs. Westshore Terminals Investment | Hammond Power vs. Upstart Investments | Hammond Power vs. Slate Grocery REIT | Hammond Power vs. Economic Investment Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |