Correlation Between Abaxx Technologies and Autocanada
Can any of the company-specific risk be diversified away by investing in both Abaxx Technologies and Autocanada 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 Abaxx Technologies and Autocanada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abaxx Technologies and Autocanada, you can compare the effects of market volatilities on Abaxx Technologies and Autocanada 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 Abaxx Technologies with a short position of Autocanada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abaxx Technologies and Autocanada.
Diversification Opportunities for Abaxx Technologies and Autocanada
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Abaxx and Autocanada is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Abaxx Technologies and Autocanada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocanada and Abaxx 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 Abaxx Technologies are associated (or correlated) with Autocanada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocanada has no effect on the direction of Abaxx Technologies i.e., Abaxx Technologies and Autocanada go up and down completely randomly.
Pair Corralation between Abaxx Technologies and Autocanada
Assuming the 90 days trading horizon Abaxx Technologies is expected to generate 0.84 times more return on investment than Autocanada. However, Abaxx Technologies is 1.19 times less risky than Autocanada. It trades about 0.03 of its potential returns per unit of risk. Autocanada is currently generating about 0.0 per unit of risk. If you would invest 831.00 in Abaxx Technologies on November 1, 2024 and sell it today you would earn a total of 239.00 from holding Abaxx Technologies or generate 28.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abaxx Technologies vs. Autocanada
Performance |
| Timeline |
| Abaxx Technologies |
| Autocanada |
Abaxx Technologies and Autocanada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abaxx Technologies and Autocanada
The main advantage of trading using opposite Abaxx Technologies and Autocanada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abaxx Technologies position performs unexpectedly, Autocanada 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 Autocanada will offset losses from the drop in Autocanada's long position.| Abaxx Technologies vs. Lite Access Technologies | Abaxx Technologies vs. Braille Energy Systems | Abaxx Technologies vs. Solar Alliance Energy | Abaxx Technologies vs. NEXE Innovations |
| Autocanada vs. Martinrea International | Autocanada vs. Linamar | Autocanada vs. NFI Group | Autocanada vs. Element Fleet Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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