Correlation Between Boyaa Interactive and AAC TECHNOLOGHLDGADR
Can any of the company-specific risk be diversified away by investing in both Boyaa Interactive and AAC TECHNOLOGHLDGADR 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 Boyaa Interactive and AAC TECHNOLOGHLDGADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyaa Interactive International and AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on Boyaa Interactive and AAC TECHNOLOGHLDGADR 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 Boyaa Interactive with a short position of AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyaa Interactive and AAC TECHNOLOGHLDGADR.
Diversification Opportunities for Boyaa Interactive and AAC TECHNOLOGHLDGADR
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyaa and AAC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Boyaa Interactive Internationa and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR and Boyaa Interactive 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 Boyaa Interactive International are associated (or correlated) with AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of Boyaa Interactive i.e., Boyaa Interactive and AAC TECHNOLOGHLDGADR go up and down completely randomly.
Pair Corralation between Boyaa Interactive and AAC TECHNOLOGHLDGADR
Assuming the 90 days horizon Boyaa Interactive International is expected to generate 2.45 times more return on investment than AAC TECHNOLOGHLDGADR. However, Boyaa Interactive is 2.45 times more volatile than AAC TECHNOLOGHLDGADR. It trades about 0.48 of its potential returns per unit of risk. AAC TECHNOLOGHLDGADR is currently generating about 0.17 per unit of risk. If you would invest 23.00 in Boyaa Interactive International on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Boyaa Interactive International or generate 143.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boyaa Interactive Internationa vs. AAC TECHNOLOGHLDGADR
Performance |
| Timeline |
| Boyaa Interactive |
| AAC TECHNOLOGHLDGADR |
Boyaa Interactive and AAC TECHNOLOGHLDGADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyaa Interactive and AAC TECHNOLOGHLDGADR
The main advantage of trading using opposite Boyaa Interactive and AAC TECHNOLOGHLDGADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyaa Interactive position performs unexpectedly, AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR will offset losses from the drop in AAC TECHNOLOGHLDGADR's long position.| Boyaa Interactive vs. National Health Investors | Boyaa Interactive vs. Diamondrock Hospitality Co | Boyaa Interactive vs. Evolution Mining Limited | Boyaa Interactive vs. Jacquet Metal Service |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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