Correlation Between Autoscope Technologies and Cepton
Can any of the company-specific risk be diversified away by investing in both Autoscope Technologies and Cepton 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 Autoscope Technologies and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autoscope Technologies Corp and Cepton Inc, you can compare the effects of market volatilities on Autoscope Technologies and Cepton 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 Autoscope Technologies with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoscope Technologies and Cepton.
Diversification Opportunities for Autoscope Technologies and Cepton
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autoscope and Cepton is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Autoscope Technologies Corp and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Autoscope 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 Autoscope Technologies Corp are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Autoscope Technologies i.e., Autoscope Technologies and Cepton go up and down completely randomly.
Pair Corralation between Autoscope Technologies and Cepton
If you would invest 438.00 in Autoscope Technologies Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Autoscope Technologies Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Autoscope Technologies Corp vs. Cepton Inc
Performance |
| Timeline |
| Autoscope Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cepton Inc |
Autoscope Technologies and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoscope Technologies and Cepton
The main advantage of trading using opposite Autoscope Technologies and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoscope Technologies position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Autoscope Technologies vs. Teledyne Technologies Incorporated | Autoscope Technologies vs. MKS Instruments | Autoscope Technologies vs. Cepton Inc | Autoscope Technologies vs. SaverOne 2014 Ltd |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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