Correlation Between Shuttle and AVerMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Shuttle and AVerMedia Technologies 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 Shuttle and AVerMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shuttle and AVerMedia Technologies, you can compare the effects of market volatilities on Shuttle and AVerMedia Technologies 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 Shuttle with a short position of AVerMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuttle and AVerMedia Technologies.
Diversification Opportunities for Shuttle and AVerMedia Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shuttle and AVerMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shuttle and AVerMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVerMedia Technologies and Shuttle 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 Shuttle are associated (or correlated) with AVerMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVerMedia Technologies has no effect on the direction of Shuttle i.e., Shuttle and AVerMedia Technologies go up and down completely randomly.
Pair Corralation between Shuttle and AVerMedia Technologies
Assuming the 90 days trading horizon Shuttle is expected to under-perform the AVerMedia Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Shuttle is 1.67 times less risky than AVerMedia Technologies. The stock trades about -0.14 of its potential returns per unit of risk. The AVerMedia Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,080 in AVerMedia Technologies on November 3, 2024 and sell it today you would earn a total of 730.00 from holding AVerMedia Technologies or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuttle vs. AVerMedia Technologies
Performance |
| Timeline |
| Shuttle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AVerMedia Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Shuttle and AVerMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuttle and AVerMedia Technologies
The main advantage of trading using opposite Shuttle and AVerMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuttle position performs unexpectedly, AVerMedia Technologies 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 AVerMedia Technologies will offset losses from the drop in AVerMedia Technologies' long position.The idea behind Shuttle and AVerMedia Technologies 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.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |