Correlation Between Tecnoglass and Hawkins
Can any of the company-specific risk be diversified away by investing in both Tecnoglass and Hawkins 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 Tecnoglass and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecnoglass and Hawkins, you can compare the effects of market volatilities on Tecnoglass and Hawkins 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 Tecnoglass with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnoglass and Hawkins.
Diversification Opportunities for Tecnoglass and Hawkins
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tecnoglass and Hawkins is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tecnoglass and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Tecnoglass 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 Tecnoglass are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Tecnoglass i.e., Tecnoglass and Hawkins go up and down completely randomly.
Pair Corralation between Tecnoglass and Hawkins
Given the investment horizon of 90 days Tecnoglass is expected to under-perform the Hawkins. But the stock apears to be less risky and, when comparing its historical volatility, Tecnoglass is 1.19 times less risky than Hawkins. The stock trades about -0.26 of its potential returns per unit of risk. The Hawkins is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 16,957 in Hawkins on August 28, 2025 and sell it today you would lose (3,853) from holding Hawkins or give up 22.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecnoglass vs. Hawkins
Performance |
| Timeline |
| Tecnoglass |
| Hawkins |
Tecnoglass and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecnoglass and Hawkins
The main advantage of trading using opposite Tecnoglass and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecnoglass position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Tecnoglass vs. Nates Food Co | Tecnoglass vs. Hunter Creek Mining | Tecnoglass vs. First Foods Group | Tecnoglass vs. BBB Foods |
| Hawkins vs. Marti Technologies | Hawkins vs. Copperbank Resources Corp | Hawkins vs. Aerofoam Metals | Hawkins vs. NanoTech Entertainment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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