Correlation Between American Aires and Ouster
Can any of the company-specific risk be diversified away by investing in both American Aires and Ouster 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 American Aires and Ouster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Aires and Ouster Inc, you can compare the effects of market volatilities on American Aires and Ouster 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 American Aires with a short position of Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Aires and Ouster.
Diversification Opportunities for American Aires and Ouster
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Ouster is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding American Aires and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc and American Aires 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 American Aires are associated (or correlated) with Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of American Aires i.e., American Aires and Ouster go up and down completely randomly.
Pair Corralation between American Aires and Ouster
Assuming the 90 days horizon American Aires is expected to under-perform the Ouster. In addition to that, American Aires is 1.5 times more volatile than Ouster Inc. It trades about -0.04 of its total potential returns per unit of risk. Ouster Inc is currently generating about 0.05 per unit of volatility. If you would invest 1,020 in Ouster Inc on September 19, 2024 and sell it today you would earn a total of 150.00 from holding Ouster Inc or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Aires vs. Ouster Inc
Performance |
| Timeline |
| American Aires |
| Ouster Inc |
American Aires and Ouster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Aires and Ouster
The main advantage of trading using opposite American Aires and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Aires position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.| American Aires vs. alpha En | American Aires vs. Alps Electric Co | American Aires vs. Bitmine Immersion Technologies | American Aires vs. AT S Austria |
| Ouster vs. KULR Technology Group | Ouster vs. LightPath Technologies | Ouster vs. Daktronics | Ouster vs. Kopin |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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