Correlation Between Hilton Metal and POWERGRID Infrastructure

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

Diversification Opportunities for Hilton Metal and POWERGRID Infrastructure

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Hilton and POWERGRID is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Metal Forging and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure and Hilton Metal 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 Hilton Metal Forging are associated (or correlated) with POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Hilton Metal i.e., Hilton Metal and POWERGRID Infrastructure go up and down completely randomly.

Pair Corralation between Hilton Metal and POWERGRID Infrastructure

Assuming the 90 days trading horizon Hilton Metal Forging is expected to under-perform the POWERGRID Infrastructure. In addition to that, Hilton Metal is 4.19 times more volatile than POWERGRID Infrastructure Investment. It trades about -0.14 of its total potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about 0.1 per unit of volatility. If you would invest  9,134  in POWERGRID Infrastructure Investment on September 4, 2025 and sell it today you would earn a total of  356.00  from holding POWERGRID Infrastructure Investment or generate 3.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.83%
ValuesDaily Returns

Hilton Metal Forging  vs.  POWERGRID Infrastructure Inves

 Performance 
       Timeline  
Hilton Metal Forging 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hilton Metal Forging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.
POWERGRID Infrastructure 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in POWERGRID Infrastructure Investment are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, POWERGRID Infrastructure is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Hilton Metal and POWERGRID Infrastructure Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hilton Metal and POWERGRID Infrastructure

The main advantage of trading using opposite Hilton Metal and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Metal position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.
The idea behind Hilton Metal Forging and POWERGRID Infrastructure Investment 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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