Correlation Between AAC TECHNOLOGHLDGADR and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and FIRST SAVINGS 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 AAC TECHNOLOGHLDGADR and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and FIRST SAVINGS FINL, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and FIRST SAVINGS 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 AAC TECHNOLOGHLDGADR with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and FIRST SAVINGS.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and FIRST SAVINGS
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAC and FIRST is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and FIRST SAVINGS
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 1.17 times more return on investment than FIRST SAVINGS. However, AAC TECHNOLOGHLDGADR is 1.17 times more volatile than FIRST SAVINGS FINL. It trades about 0.11 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about 0.1 per unit of risk. If you would invest 366.00 in AAC TECHNOLOGHLDGADR on October 14, 2024 and sell it today you would earn a total of 76.00 from holding AAC TECHNOLOGHLDGADR or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| AAC TECHNOLOGHLDGADR |
| FIRST SAVINGS FINL |
AAC TECHNOLOGHLDGADR and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and FIRST SAVINGS
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| AAC TECHNOLOGHLDGADR vs. Advanced Medical Solutions | AAC TECHNOLOGHLDGADR vs. Molson Coors Beverage | AAC TECHNOLOGHLDGADR vs. GLOBUS MEDICAL A | AAC TECHNOLOGHLDGADR vs. OBSERVE MEDICAL ASA |
| FIRST SAVINGS vs. Amkor Technology | FIRST SAVINGS vs. AAC TECHNOLOGHLDGADR | FIRST SAVINGS vs. GLG LIFE TECH | FIRST SAVINGS vs. Easy Software AG |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |