Correlation Between AUPU Home and Touchstone International
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By analyzing existing cross correlation between AUPU Home Style and Touchstone International Medical, you can compare the effects of market volatilities on AUPU Home and Touchstone International 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 AUPU Home with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Touchstone International.
Diversification Opportunities for AUPU Home and Touchstone International
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUPU and Touchstone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and AUPU Home 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 AUPU Home Style are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of AUPU Home i.e., AUPU Home and Touchstone International go up and down completely randomly.
Pair Corralation between AUPU Home and Touchstone International
Assuming the 90 days trading horizon AUPU Home Style is expected to under-perform the Touchstone International. In addition to that, AUPU Home is 1.33 times more volatile than Touchstone International Medical. It trades about -0.01 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about 0.37 per unit of volatility. If you would invest 1,697 in Touchstone International Medical on November 7, 2024 and sell it today you would earn a total of 192.00 from holding Touchstone International Medical or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Touchstone International Medic
Performance |
| Timeline |
| AUPU Home Style |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Touchstone International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AUPU Home and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Touchstone International
The main advantage of trading using opposite AUPU Home and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.The idea behind AUPU Home Style and Touchstone International Medical 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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