Correlation Between Aehr Test and Awilco Drilling
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Awilco Drilling 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 Aehr Test and Awilco Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Awilco Drilling PLC, you can compare the effects of market volatilities on Aehr Test and Awilco Drilling 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 Aehr Test with a short position of Awilco Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Awilco Drilling.
Diversification Opportunities for Aehr Test and Awilco Drilling
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aehr and Awilco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Awilco Drilling PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awilco Drilling PLC and Aehr Test 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 Aehr Test Systems are associated (or correlated) with Awilco Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awilco Drilling PLC has no effect on the direction of Aehr Test i.e., Aehr Test and Awilco Drilling go up and down completely randomly.
Pair Corralation between Aehr Test and Awilco Drilling
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the Awilco Drilling. But the stock apears to be less risky and, when comparing its historical volatility, Aehr Test Systems is 10.59 times less risky than Awilco Drilling. The stock trades about -0.04 of its potential returns per unit of risk. The Awilco Drilling PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Awilco Drilling PLC on September 4, 2024 and sell it today you would lose (808.00) from holding Awilco Drilling PLC or give up 80.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Awilco Drilling PLC
Performance |
| Timeline |
| Aehr Test Systems |
| Awilco Drilling PLC |
Aehr Test and Awilco Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Awilco Drilling
The main advantage of trading using opposite Aehr Test and Awilco Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Awilco Drilling 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 Awilco Drilling will offset losses from the drop in Awilco Drilling's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Awilco Drilling vs. Park Hotels Resorts | Awilco Drilling vs. Biglari Holdings | Awilco Drilling vs. Dennys Corp | Awilco Drilling vs. Lifevantage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |