Correlation Between AAC Technologies and PowerFleet
Can any of the company-specific risk be diversified away by investing in both AAC Technologies and PowerFleet 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 Technologies and PowerFleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Technologies Holdings and PowerFleet, you can compare the effects of market volatilities on AAC Technologies and PowerFleet 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 Technologies with a short position of PowerFleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Technologies and PowerFleet.
Diversification Opportunities for AAC Technologies and PowerFleet
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AAC and PowerFleet is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AAC Technologies Holdings and PowerFleet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet and AAC Technologies 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 Technologies Holdings are associated (or correlated) with PowerFleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet has no effect on the direction of AAC Technologies i.e., AAC Technologies and PowerFleet go up and down completely randomly.
Pair Corralation between AAC Technologies and PowerFleet
Assuming the 90 days horizon AAC Technologies is expected to generate 1.52 times less return on investment than PowerFleet. But when comparing it to its historical volatility, AAC Technologies Holdings is 1.22 times less risky than PowerFleet. It trades about 0.1 of its potential returns per unit of risk. PowerFleet is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 314.00 in PowerFleet on September 1, 2024 and sell it today you would earn a total of 155.00 from holding PowerFleet or generate 49.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 48.15% |
| Values | Daily Returns |
AAC Technologies Holdings vs. PowerFleet
Performance |
| Timeline |
| AAC Technologies Holdings |
| PowerFleet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AAC Technologies and PowerFleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Technologies and PowerFleet
The main advantage of trading using opposite AAC Technologies and PowerFleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Technologies position performs unexpectedly, PowerFleet 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 PowerFleet will offset losses from the drop in PowerFleet's long position.| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
| PowerFleet vs. KVH Industries | PowerFleet vs. Comtech Telecommunications Corp | PowerFleet vs. ADTRAN Inc | PowerFleet vs. Digi International |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| 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 |