Correlation Between ANGI Homeservices and APPLIED MATERIALS
Can any of the company-specific risk be diversified away by investing in both ANGI Homeservices and APPLIED MATERIALS 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 ANGI Homeservices and APPLIED MATERIALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGI Homeservices and APPLIED MATERIALS, you can compare the effects of market volatilities on ANGI Homeservices and APPLIED MATERIALS 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 ANGI Homeservices with a short position of APPLIED MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGI Homeservices and APPLIED MATERIALS.
Diversification Opportunities for ANGI Homeservices and APPLIED MATERIALS
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANGI and APPLIED is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and APPLIED MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLIED MATERIALS and ANGI Homeservices 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 ANGI Homeservices are associated (or correlated) with APPLIED MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLIED MATERIALS has no effect on the direction of ANGI Homeservices i.e., ANGI Homeservices and APPLIED MATERIALS go up and down completely randomly.
Pair Corralation between ANGI Homeservices and APPLIED MATERIALS
Assuming the 90 days horizon ANGI Homeservices is expected to generate 3.37 times less return on investment than APPLIED MATERIALS. In addition to that, ANGI Homeservices is 1.72 times more volatile than APPLIED MATERIALS. It trades about 0.01 of its total potential returns per unit of risk. APPLIED MATERIALS is currently generating about 0.04 per unit of volatility. If you would invest 10,990 in APPLIED MATERIALS on November 28, 2024 and sell it today you would earn a total of 4,780 from holding APPLIED MATERIALS or generate 43.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGI Homeservices vs. APPLIED MATERIALS
Performance |
| Timeline |
| ANGI Homeservices |
| APPLIED MATERIALS |
ANGI Homeservices and APPLIED MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGI Homeservices and APPLIED MATERIALS
The main advantage of trading using opposite ANGI Homeservices and APPLIED MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices position performs unexpectedly, APPLIED MATERIALS 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 APPLIED MATERIALS will offset losses from the drop in APPLIED MATERIALS's long position.| ANGI Homeservices vs. MeVis Medical Solutions | ANGI Homeservices vs. IMAGIN MEDICAL INC | ANGI Homeservices vs. GALENA MINING LTD | ANGI Homeservices vs. ADRIATIC METALS LS 013355 |
| APPLIED MATERIALS vs. MCEWEN MINING INC | APPLIED MATERIALS vs. Jacquet Metal Service | APPLIED MATERIALS vs. Sunny Optical Technology | APPLIED MATERIALS vs. GRIFFIN MINING LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |