Correlation Between Hayward Holdings and GrafTech International
Can any of the company-specific risk be diversified away by investing in both Hayward Holdings and GrafTech International 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 Hayward Holdings and GrafTech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hayward Holdings and GrafTech International, you can compare the effects of market volatilities on Hayward Holdings and GrafTech International 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 Hayward Holdings with a short position of GrafTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hayward Holdings and GrafTech International.
Diversification Opportunities for Hayward Holdings and GrafTech International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hayward and GrafTech is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hayward Holdings and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International and Hayward Holdings 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 Hayward Holdings are associated (or correlated) with GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Hayward Holdings i.e., Hayward Holdings and GrafTech International go up and down completely randomly.
Pair Corralation between Hayward Holdings and GrafTech International
Given the investment horizon of 90 days Hayward Holdings is expected to under-perform the GrafTech International. But the stock apears to be less risky and, when comparing its historical volatility, Hayward Holdings is 2.91 times less risky than GrafTech International. The stock trades about -0.01 of its potential returns per unit of risk. The GrafTech International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 99.00 in GrafTech International on March 21, 2025 and sell it today you would earn a total of 24.00 from holding GrafTech International or generate 24.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hayward Holdings vs. GrafTech International
Performance |
| Timeline |
| Hayward Holdings |
| GrafTech International |
Hayward Holdings and GrafTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hayward Holdings and GrafTech International
The main advantage of trading using opposite Hayward Holdings and GrafTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hayward Holdings position performs unexpectedly, GrafTech International 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 GrafTech International will offset losses from the drop in GrafTech International's long position.| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
| GrafTech International vs. Kimball Electronics | GrafTech International vs. Hayward Holdings | GrafTech International vs. Enersys | GrafTech International vs. Espey Mfg Electronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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