Correlation Between Aarons and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Aarons and Multi Ways 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 Aarons and Multi Ways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Aarons and Multi Ways Holdings, you can compare the effects of market volatilities on Aarons and Multi Ways 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 Aarons with a short position of Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aarons and Multi Ways.
Diversification Opportunities for Aarons and Multi Ways
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aarons and Multi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Aarons and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings and Aarons 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 The Aarons are associated (or correlated) with Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Aarons i.e., Aarons and Multi Ways go up and down completely randomly.
Pair Corralation between Aarons and Multi Ways
If you would invest 1,009 in The Aarons on August 26, 2024 and sell it today you would earn a total of 0.00 from holding The Aarons or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
The Aarons vs. Multi Ways Holdings
Performance |
| Timeline |
| Aarons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Multi Ways Holdings |
Aarons and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aarons and Multi Ways
The main advantage of trading using opposite Aarons and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aarons position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Aarons vs. Custom Truck One | Aarons vs. PROG Holdings | Aarons vs. McGrath RentCorp | Aarons vs. HE Equipment Services |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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