Correlation Between Hawkins and Ashland Global
Can any of the company-specific risk be diversified away by investing in both Hawkins and Ashland Global 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 Hawkins and Ashland Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Ashland Global Holdings, you can compare the effects of market volatilities on Hawkins and Ashland Global 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 Hawkins with a short position of Ashland Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Ashland Global.
Diversification Opportunities for Hawkins and Ashland Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hawkins and Ashland is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Ashland Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashland Global Holdings and Hawkins 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 Hawkins are associated (or correlated) with Ashland Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashland Global Holdings has no effect on the direction of Hawkins i.e., Hawkins and Ashland Global go up and down completely randomly.
Pair Corralation between Hawkins and Ashland Global
Given the investment horizon of 90 days Hawkins is expected to generate 0.73 times more return on investment than Ashland Global. However, Hawkins is 1.36 times less risky than Ashland Global. It trades about 0.32 of its potential returns per unit of risk. Ashland Global Holdings is currently generating about 0.03 per unit of risk. If you would invest 11,927 in Hawkins on May 1, 2025 and sell it today you would earn a total of 4,136 from holding Hawkins or generate 34.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Hawkins vs. Ashland Global Holdings
Performance |
| Timeline |
| Hawkins |
| Ashland Global Holdings |
Hawkins and Ashland Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Ashland Global
The main advantage of trading using opposite Hawkins and Ashland Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, Ashland Global 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 Ashland Global will offset losses from the drop in Ashland Global's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Ashland Global vs. H B Fuller | Ashland Global vs. Element Solutions | Ashland Global vs. Balchem | Ashland Global vs. Avantor |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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