Correlation Between Acme United and Solidion Technology
Can any of the company-specific risk be diversified away by investing in both Acme United and Solidion Technology 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 Acme United and Solidion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and Solidion Technology, you can compare the effects of market volatilities on Acme United and Solidion Technology 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 Acme United with a short position of Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Solidion Technology.
Diversification Opportunities for Acme United and Solidion Technology
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acme and Solidion is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology and Acme United 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 Acme United are associated (or correlated) with Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Acme United i.e., Acme United and Solidion Technology go up and down completely randomly.
Pair Corralation between Acme United and Solidion Technology
Considering the 90-day investment horizon Acme United is expected to generate 0.18 times more return on investment than Solidion Technology. However, Acme United is 5.51 times less risky than Solidion Technology. It trades about 0.03 of its potential returns per unit of risk. Solidion Technology is currently generating about -0.02 per unit of risk. If you would invest 3,874 in Acme United on September 4, 2024 and sell it today you would earn a total of 482.00 from holding Acme United or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acme United vs. Solidion Technology
Performance |
| Timeline |
| Acme United |
| Solidion Technology |
Acme United and Solidion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and Solidion Technology
The main advantage of trading using opposite Acme United and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
| Solidion Technology vs. Skechers USA | Solidion Technology vs. Acme United | Solidion Technology vs. World Houseware Limited | Solidion Technology vs. Spectrum Brands Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |