Correlation Between Aehr Test and Vita Coco
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Vita Coco 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 Vita Coco 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 Vita Coco, you can compare the effects of market volatilities on Aehr Test and Vita Coco 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 Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Vita Coco.
Diversification Opportunities for Aehr Test and Vita Coco
Very good diversification
The 3 months correlation between Aehr and Vita is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco 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 Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of Aehr Test i.e., Aehr Test and Vita Coco go up and down completely randomly.
Pair Corralation between Aehr Test and Vita Coco
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the Vita Coco. In addition to that, Aehr Test is 1.59 times more volatile than Vita Coco. It trades about -0.16 of its total potential returns per unit of risk. Vita Coco is currently generating about 0.32 per unit of volatility. If you would invest 2,961 in Vita Coco on September 1, 2024 and sell it today you would earn a total of 593.00 from holding Vita Coco or generate 20.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Vita Coco
Performance |
| Timeline |
| Aehr Test Systems |
| Vita Coco |
Aehr Test and Vita Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Vita Coco
The main advantage of trading using opposite Aehr Test and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. National Beverage Corp | Vita Coco vs. Embotelladora Andina SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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