Correlation Between Mueller Water and Hayward Holdings
Can any of the company-specific risk be diversified away by investing in both Mueller Water and Hayward Holdings 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 Mueller Water and Hayward Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mueller Water Products and Hayward Holdings, you can compare the effects of market volatilities on Mueller Water and Hayward Holdings 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 Mueller Water with a short position of Hayward Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mueller Water and Hayward Holdings.
Diversification Opportunities for Mueller Water and Hayward Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mueller and Hayward is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mueller Water Products and Hayward Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hayward Holdings and Mueller Water 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 Mueller Water Products are associated (or correlated) with Hayward Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hayward Holdings has no effect on the direction of Mueller Water i.e., Mueller Water and Hayward Holdings go up and down completely randomly.
Pair Corralation between Mueller Water and Hayward Holdings
Considering the 90-day investment horizon Mueller Water Products is expected to under-perform the Hayward Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Mueller Water Products is 1.6 times less risky than Hayward Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The Hayward Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,557 in Hayward Holdings on September 13, 2025 and sell it today you would earn a total of 46.00 from holding Hayward Holdings or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mueller Water Products vs. Hayward Holdings
Performance |
| Timeline |
| Mueller Water Products |
| Hayward Holdings |
Mueller Water and Hayward Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mueller Water and Hayward Holdings
The main advantage of trading using opposite Mueller Water and Hayward Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mueller Water position performs unexpectedly, Hayward Holdings 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 Hayward Holdings will offset losses from the drop in Hayward Holdings' long position.| Mueller Water vs. Franklin Electric Co | Mueller Water vs. CSW Industrials, | Mueller Water vs. Crane NXT Co | Mueller Water vs. Kadant Inc |
| Hayward Holdings vs. GrafTech International | Hayward Holdings vs. Corporacion America Airports | Hayward Holdings vs. Brady | Hayward Holdings vs. Plug Power |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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