Correlation Between AAC Clyde and Embellence Group
Can any of the company-specific risk be diversified away by investing in both AAC Clyde and Embellence Group 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 Clyde and Embellence Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Clyde Space and Embellence Group AB, you can compare the effects of market volatilities on AAC Clyde and Embellence Group 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 Clyde with a short position of Embellence Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and Embellence Group.
Diversification Opportunities for AAC Clyde and Embellence Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AAC and Embellence is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and Embellence Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embellence Group and AAC Clyde 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 Clyde Space are associated (or correlated) with Embellence Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embellence Group has no effect on the direction of AAC Clyde i.e., AAC Clyde and Embellence Group go up and down completely randomly.
Pair Corralation between AAC Clyde and Embellence Group
Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 3.91 times more return on investment than Embellence Group. However, AAC Clyde is 3.91 times more volatile than Embellence Group AB. It trades about 0.22 of its potential returns per unit of risk. Embellence Group AB is currently generating about -0.19 per unit of risk. If you would invest 3,540 in AAC Clyde Space on August 30, 2024 and sell it today you would earn a total of 1,065 from holding AAC Clyde Space or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC Clyde Space vs. Embellence Group AB
Performance |
| Timeline |
| AAC Clyde Space |
| Embellence Group |
AAC Clyde and Embellence Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Clyde and Embellence Group
The main advantage of trading using opposite AAC Clyde and Embellence Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Clyde position performs unexpectedly, Embellence Group 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 Embellence Group will offset losses from the drop in Embellence Group's long position.| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
| Embellence Group vs. AB Electrolux | Embellence Group vs. Husqvarna AB | Embellence Group vs. Essity AB | Embellence Group vs. Dometic Group AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| 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 | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| 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 | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |