Correlation Between AAC TECHNOLOGHLDGADR and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and Safestore Holdings 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 Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and Safestore Holdings plc, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and Safestore Holdings.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and Safestore Holdings
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AAC and Safestore is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and Safestore Holdings go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and Safestore Holdings
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 1.12 times more return on investment than Safestore Holdings. However, AAC TECHNOLOGHLDGADR is 1.12 times more volatile than Safestore Holdings plc. It trades about 0.16 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.19 per unit of risk. If you would invest 418.00 in AAC TECHNOLOGHLDGADR on October 28, 2024 and sell it today you would earn a total of 78.00 from holding AAC TECHNOLOGHLDGADR or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. Safestore Holdings plc
Performance |
| Timeline |
| AAC TECHNOLOGHLDGADR |
| Safestore Holdings plc |
AAC TECHNOLOGHLDGADR and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and Safestore Holdings
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| AAC TECHNOLOGHLDGADR vs. ASPEN TECHINC DL | AAC TECHNOLOGHLDGADR vs. SILICON LABORATOR | AAC TECHNOLOGHLDGADR vs. BioNTech SE | AAC TECHNOLOGHLDGADR vs. Firan Technology Group |
| Safestore Holdings vs. Lyxor 1 | Safestore Holdings vs. Xtrackers LevDAX | Safestore Holdings vs. Xtrackers ShortDAX | Safestore Holdings vs. Superior Plus Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |