Correlation Between Energy Services and Hat Trick

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

Diversification Opportunities for Energy Services and Hat Trick

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Energy and Hat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services and Hat Trick Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hat Trick Beverage and Energy Services 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 Energy Services are associated (or correlated) with Hat Trick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hat Trick Beverage has no effect on the direction of Energy Services i.e., Energy Services and Hat Trick go up and down completely randomly.

Pair Corralation between Energy Services and Hat Trick

If you would invest  0.00  in Hat Trick Beverage on September 10, 2025 and sell it today you would earn a total of  0.00  from holding Hat Trick Beverage or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Energy Services  vs.  Hat Trick Beverage

 Performance 
       Timeline  
Energy Services 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Energy Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.
Hat Trick Beverage 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hat Trick Beverage has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental drivers, Hat Trick is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Energy Services and Hat Trick Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Energy Services and Hat Trick

The main advantage of trading using opposite Energy Services and Hat Trick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services position performs unexpectedly, Hat Trick 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 Hat Trick will offset losses from the drop in Hat Trick's long position.
The idea behind Energy Services and Hat Trick Beverage 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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