Correlation Between AAC Clyde and Profoto Holding
Can any of the company-specific risk be diversified away by investing in both AAC Clyde and Profoto Holding 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 Profoto Holding 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 Profoto Holding AB, you can compare the effects of market volatilities on AAC Clyde and Profoto Holding 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 Profoto Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and Profoto Holding.
Diversification Opportunities for AAC Clyde and Profoto Holding
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAC and Profoto is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and Profoto Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profoto Holding AB 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 Profoto Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profoto Holding AB has no effect on the direction of AAC Clyde i.e., AAC Clyde and Profoto Holding go up and down completely randomly.
Pair Corralation between AAC Clyde and Profoto Holding
Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 16.57 times more return on investment than Profoto Holding. However, AAC Clyde is 16.57 times more volatile than Profoto Holding AB. It trades about 0.05 of its potential returns per unit of risk. Profoto Holding AB is currently generating about -0.04 per unit of risk. If you would invest 69.00 in AAC Clyde Space on December 5, 2024 and sell it today you would earn a total of 5,731 from holding AAC Clyde Space or generate 8305.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC Clyde Space vs. Profoto Holding AB
Performance |
| Timeline |
| AAC Clyde Space |
| Profoto Holding AB |
AAC Clyde and Profoto Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Clyde and Profoto Holding
The main advantage of trading using opposite AAC Clyde and Profoto Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Clyde position performs unexpectedly, Profoto Holding 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 Profoto Holding will offset losses from the drop in Profoto Holding'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 |
| Profoto Holding vs. USWE Sports AB | ||
| Profoto Holding vs. Scout Gaming Group | ||
| Profoto Holding vs. Addtech AB | ||
| Profoto Holding vs. FormPipe Software 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |