Correlation Between Amyris and Hawkins

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

Diversification Opportunities for Amyris and Hawkins

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Amyris and Hawkins is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amyris Inc and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Amyris 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 Amyris Inc 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 Amyris i.e., Amyris and Hawkins go up and down completely randomly.

Pair Corralation between Amyris and Hawkins

Given the investment horizon of 90 days Amyris Inc is expected to generate 3.88 times more return on investment than Hawkins. However, Amyris is 3.88 times more volatile than Hawkins. It trades about 0.15 of its potential returns per unit of risk. Hawkins is currently generating about 0.12 per unit of risk. If you would invest  271.00  in Amyris Inc on July 6, 2022 and sell it today you would earn a total of  54.00  from holding Amyris Inc or generate 19.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amyris Inc  vs.  Hawkins

 Performance (%) 
       Timeline  
Amyris Inc 
Amyris Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Amyris Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Amyris reported solid returns over the last few months and may actually be approaching a breakup point.

Amyris Price Channel

Hawkins 
Hawkins Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hawkins are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Hawkins disclosed solid returns over the last few months and may actually be approaching a breakup point.

Hawkins Price Channel

Amyris and Hawkins Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amyris and Hawkins

The main advantage of trading using opposite Amyris and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amyris 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.
Amyris vs. Amazon Inc
The idea behind Amyris Inc and Hawkins 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.
Hawkins vs. Amazon Inc
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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